Bitcoin is "Bad for Dictators" According to the Human Rights Foundation: A Tool for Financial Resistance

• Why is Bitcoin a Threat to Authoritarian Regimes?
• How Has the Human Rights Foundation Used Bitcoin?
• Why Are Governments Like the U.S. Hoarding Bitcoin?
• What Are the Risks of Using Bitcoin in Authoritarian Countries?
• How Could Bitcoin Reshape Global Power Dynamics?
• Frequently Asked Questions

In a bold statement at the bitcoin Policy Summit in Washington, Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation (HRF), declared that "Bitcoin is bad for dictators." This cryptocurrency, often seen as a volatile asset, is now being hailed as a powerful tool against authoritarian regimes. From bypassing financial controls to offering a lifeline for dissidents, Bitcoin is reshaping the geopolitical landscape. Meanwhile, the U.S. is quietly building its own strategic Bitcoin reserve, adding another layer to this complex narrative.

Why is Bitcoin a Threat to Authoritarian Regimes?

Authoritarian governments rely on three key mechanisms to maintain control: hyperinflation, frozen bank accounts, and financial surveillance. Bitcoin disrupts all of them. Hyperinflation erodes savings, but Bitcoin’s fixed supply of 21 million coins makes it immune to such manipulation. When citizens hold their own Bitcoin in self-custody wallets, governments can’t freeze their assets or track their transactions. This financial autonomy is revolutionary in countries where dissent is met with economic retaliation.

Gladstein emphasized that Bitcoin "literally saves lives" in oppressive states. For example, during the 2013 Ukrainian revolution, pro-democracy protesters used Bitcoin to fund their activities after their bank accounts were frozen. At the time, Bitcoin was worth around $100, and its potential was untested. Yet, it proved to be a game-changer, enabling the Flow of value where traditional money failed.

How Has the Human Rights Foundation Used Bitcoin?

Since 2013, the HRF has integrated Bitcoin into its support for global dissident movements. The organization provides grants in Bitcoin to activists in countries like Venezuela, Belarus, and Hong Kong, where financial repression is rampant. By using Bitcoin, these groups can receive funding without relying on corrupt banking systems or exposing their identities.

One notable case involved a Venezuelan journalist who used Bitcoin to purchase encrypted communication tools after the government seized his assets. "If you use Bitcoin correctly—without linking it to your identity—it’s a lifeline," Gladstein noted. However, he warned that technical mistakes, like reusing addresses or leaking metadata, can compromise anonymity.

Why Are Governments Like the U.S. Hoarding Bitcoin?

Ironically, the same tool that empowers dissidents is now being adopted by nation-states. Under the TRUMP administration, the U.S. began accumulating Bitcoin through judicial seizures, aiming to build a strategic reserve. This move aligns with broader efforts to secure monetary sovereignty amid rising geopolitical tensions.

Other countries, like Ukraine, have also turned to Bitcoin during crises. In 2022, the Ukrainian government raised over $100 million in Bitcoin donations to fund its defense against Russia. This dual use—as both a shield for the oppressed and a weapon for states—highlights Bitcoin’s unique role in modern finance.

What Are the Risks of Using Bitcoin in Authoritarian Countries?

While Bitcoin offers freedom, it’s not foolproof. Authoritarian regimes are increasingly cracking down on crypto exchanges and peer-to-peer networks. In China, for instance, trading Bitcoin carries severe penalties. Users must also navigate technical hurdles, like securing private keys and avoiding phishing scams.

Gladstein advises activists to combine Bitcoin with other privacy tools, such as VPNs and encrypted messaging apps. "The tech stack matters," he said. "One slip-up can undo everything."

How Could Bitcoin Reshape Global Power Dynamics?

Bitcoin’s decentralized nature challenges the traditional monopoly of nation-states over money. In the 21st century, financial sovereignty may no longer be tied to borders but to cryptographic keys. This shift could weaken dictatorships that rely on controlling their citizens’ wealth while empowering individuals and democracies.

As Gladstein put it, "Bitcoin doesn’t care about politics. It’s math." And math, it seems, is the ultimate equalizer.

Frequently Asked Questions

How does Bitcoin help dissidents in authoritarian countries?

Bitcoin allows dissidents to receive and spend money without government interference. Unlike traditional banks, Bitcoin transactions can’t be frozen or censored, making it a vital tool for activists under financial repression.

Why is the U.S. accumulating Bitcoin?

The U.S. views Bitcoin as a strategic asset for maintaining monetary sovereignty. By holding Bitcoin reserves, the government can hedge against economic instability and geopolitical risks.

Can authoritarian governments stop Bitcoin?

While they can restrict access to exchanges, Bitcoin’s peer-to-peer network is resilient. As long as people have internet access, they can transact freely.

What are the risks of using Bitcoin in high-surveillance states?

Users must avoid linking their identities to Bitcoin addresses. Techniques like CoinJoin and using privacy-focused wallets can enhance anonymity.