Financial Freedom Report #51

By HRF — Nov 28, 2024

Good morning, readers!

In Turkey, through years of double-digit inflation, the state has eroded the value of the country’s largest banknote, the 200-lira bill, whose purchasing power has plummeted from $140 in 2010 to just $5.80 today. In scenes reminiscent of many other authoritarian states, banks and ATM providers are adjusting their business practices to adapt to the sheer volume of cash needed for purchases. Some branches are refilling tellers up to three times a day, and ATMs are increasing withdrawal limits while phasing out support for low-denomination notes. President Recep Tayyip Erdogan’s policies have only diminished citizens’ purchasing power, reminiscent of Turkey’s runaway inflation in the 1990s.

Meanwhile, in Nicaragua, journalist Elsbeth D’Anda was arrested by Daniel Ortega’s regime for speaking out about the rising cost of living in the country on his television broadcast. Officials stormed his home, confiscated all his broadcasting equipment, and sent him to the infamous El Chipote prison. This is a sobering reminder of the lengths Ortega’s regime will take to silence dissent or criticism.

On the open-source technology front, two new Bitcoin wallets were released this week. StashPay, a new Bitcoin and Lightning wallet, was released as an APK for Android and via Testflight for iOS. It leverages the Lightning and Liquid protocols, offering fast and low-cost transactions for users without dependence on centralized app stores. Additionally, Unify, a Bitcoin Payjoin wallet, is now available for testing. It leverages Nostr and Bitcoin Core and offers more private transactions by using Payjoins, which obscure transaction activity by enabling users to make collaborative payments.

We end with a tutorial from Bitcoin educator Ben Perrin (BTC Sessions), covering how to accept Bitcoin payments in a non-custodial way using BTCPay Server. This is a valuable tutorial for activists and nonprofits seeking to receive Bitcoin donations without fear of censorship or confiscation.

On this Thanksgiving, we are very grateful that you take the time to read this newsletter, and look forward to continuing to publish stories that matter in the world of financial freedom as we move to the close of the year and beyond.

Now, let’s dive right in!

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GLOBAL NEWS

Turkey | Lira Banknotes Stripped of Value

In Turkey, after years of state-driven double-digit inflation, the purchasing power of its largest banknote has collapsed. The 200 lira note, once worth $140 in 2010, is worth just $5.80 today. This depreciation makes the note increasingly impractical for daily expenses, as it is barely enough for two cups of coffee. Additionally, smaller denomination banknotes are so unsuitable for daily expenses that they have essentially become scraps, as 200 lira notes make up 80% of all cash in circulation (up from 16% in 2020). In a cash-centric country like Turkey, some bank branches now need to refill their tellers three times a day, while ATMs are increasing withdrawal limits and are expected to stop offering notes below 100 lira. This financial strain is reminiscent of the 1990s, when runaway inflation devastated citizens’ savings and forced the Turkish government to remove six zeros from the currency in order to create the Turkish lira used today.

Nicaragua | Journalist Arrested for Criticizing Rising Cost of Living

The National Police arrested Nicaraguan journalist Elsbeth D’Anda last month for criticizing the rising cost of living on his television program La Cobertura. The regime loyalists deployed 20 officers and detained D’Anda at his home, confiscating his equipment before taking him to the notorious El Chipote prison. Several press freedom organizations have condemned the arbitrary detention as an attack on free expression. This arrest is the latest addition to a series of repressive measures by the Sandinista regime, which has crushed independent media through shutdowns, exiles, intimidations, and persecutions.

China | Expels Former Head of CBDC Project

The Chinese Communist Party (CCP) expelled Yao Qian, the former head of China’s central bank digital currency (CBDC) project, from his government position over allegations of corruption. Accused of accepting bribes in the form of digital assets, real estate, and luxury goods, Yao reportedly abused his role to favor specific technology providers for personal gain. His removal draws attention to the questionable governance of China’s CBDC, which already faces extensive criticisms regarding privacy and censorship. Qian’s case accentuates the risks of centralized systems, where unchecked power can foster corruption. As China advances its CBDC for cross-border transactions, this case foreshadows the broader implications of centrally controlled money in the hands of authoritarian regimes.

Russia | ‘War Economy’ Causing Inflation in Essential Items

As Russia continues its affront on Ukraine, its economy is experiencing a sharp rise in the prices of essential goods, leaving everyday citizens grappling with an escalating cost of living. Putin’s record defense spending, set to hit $138 billion in next year’s budget, has pushed inflation to 8.5%, with goods like butter rising as much as 26%. “You can’t fight inflation and a war at the same time,” says Alexandra Prokopenko, a fellow at the Carnegie Russia Eurasia Center in Berlin. Meanwhile, the regime is cracking down on alternative assets, banning Bitcoin mining in several regions, including Siberia and occupied territories of Ukraine, leaving fewer options for citizens to protect their savings and autonomy.

DR Congo | Proposed Constitution Change Prompts Outcry

In the DRC, opposition leaders are mobilizing nationwide protests against President Felix Tshisekedi’s plan to draft a new constitution, fearing it will extend presidential term limits and erode other democratic processes. Tshisekedi openly criticizes the constitution as outdated and obstructive to his governance, while opposition figures argue it prevents authoritarianism and ensures peaceful transitions of power. Concerns over constitutional changes are not unfounded in a country with pervasive repression and censorship. The DRC has laws restricting freedom of expression, such as banning government criticism in songs. It also uses financial policies like limiting electronic payments to Congolese francs to prop up its currency. With more than 25 million people facing food insecurity and economic freedom ranking among the lowest globally, Tshisekedi’s plan will only further entrench authoritarian rule at the expense of citizens’ rights.

LATEST IN BITCOIN NEWS, DEVELOPMENT, AND COMMUNITY

Unify | New Payjoin Wallet

Unify, a new Payjoin wallet that provides privacy for users when making Bitcoin payments, has been released and is now available for testing. Payjoins obscure individual transaction histories by enabling multiple parties to make collaborative payments. This functionality is especially crucial for individuals navigating repressive regimes, where financial privacy is paramount for their safety. The wallet also plans to add support for Silent Payments in the future. Unify is still in its early stages of development, making it suitable only for test funds. Still, it is a promising development to help make Bitcoin more private by default. You can test the wallet out here.

StashPay | New Lightning and Liquid Wallet

StashPay, a new self-custody Bitcoin wallet, is now available for download as an APK on Android and iOS via Testflight. It leverages the Lightning and Liquid Networks and offers comparatively low fees and fast transactions. StashPay also reduces the risks associated with centralized app stores removing the wallet by offering the APK. Future updates will include offline receive and Lightning address support. You can test the wallet here.

NDK | Launches Mobile Nostr Development Kit

A mobile version of the Nostr Development Kit (NDK Mobile) has been released by P It is designed to simplify the creation of Nostr applications on mobile platforms by providing developers with the tools needed to build them. This will help strengthen the overall Nostr ecosystem, improve accessibility, and bring Nostr to a wider audience, helping provide more options for developers hoping to build alternatives to today’s state- and corporate controlled social media networks. You can view the full release notes here.

Libréria de Satoshi | Concludes Bitcoin 4 Open Source (B4OS) Residency

Libréria de Satoshi, a Bitcoin technical educational initiative and HRF grantee, successfully wrapped up its Bitcoin 4 Open Source (B4OS) Residency, a six-month technical training program led by 15 Spanish developers that emphasizes the vital role of censorship-resistant technologies in preserving financial freedom and human rights. The program culminated in a two-week residency in Buenos Aires, where 20 students had the opportunity to participate in and advance critical open-source projects like Bitcoin Core, Mostro, SeedSigner, Fedimint, and Cashu.

Blockchain Commons | Hosting FROST Developer Meeting

Blockchain Commons, an HRF grantee advancing secure and open Bitcoin development, will host a Flexible Round-Optimized Schnorr Threshold Signatures (FROST) developer meeting on Dec. 4. FROST is a next-generation multisignature system that brings privacy and scalability benefits to Bitcoin without requiring a fork. The event invites developers interested in incorporating FROST into their wallets and applications to attend. They will learn why FROST is important, the advantages it carries, and gain insights from real-world implementations of FROST. HRF is pleased to see a hands-on opportunity for developers to learn, collaborate, and leverage FROST to strengthen their projects' security and privacy. You can learn more about the meeting here.

OpenSats | Announces Third Round of Bitcoin Education Grants

OpenSats, a public nonprofit funding free and open-source software and projects, announced its third wave of Bitcoin education grants, supporting global initiatives that make Bitcoin education more accessible and impactful. Among the recipients is Yes Bitcoin Haiti, a Bitcoin circular economy in Haiti that hosts educational workshops, onboards merchants, and has a Bitcoin Diploma program for students in underserved communities. Another grantee, Bitcoin 4all, delivers fundamental Bitcoin knowledge through short digestible videos in English, Spanish, and Portuguese, helping empower those across Latin America with the information they need to reclaim their financial freedom. It is great to see continued support for Bitcoin education.