To really help ordinary people in oppressed countries, the first step is to implement policies such that they only affect those who should be affected.
If you do that, cryptocurrency benefits become moot: a Russian freelancer working overseas can legally TransferWise money to help her mom, but a Putin-connected oligarch can't wire money to help the regime.
For many reasons, it's difficult: e.g., how do you verify that your Russian user does not in fact work for Gazprom? Much safer to implement a total ban on anyone connecting from a Russian IP or using a Russian bank, explicitly sanctioned or not.
However, blanket financial anonymity at scale is not an acceptable workaround. Making it simpler for kleptocrats in charge to finance questionable activities and launder money obtained through thievery and violence, it introduces more problems than it solves, and in fact props up the regime.
>>If you do that, cryptocurrency benefits become moot: a Russian freelancer working overseas can legally TransferWise money to help her mom, but a Putin-connected oligarch can't wire money to help the regime
There are plenty of nationalities which are banned from TransferWise:
Maybe you misunderstood me. This year Russians got de facto banned from many services, cannot use paid features of Github (Copilot or sponsoring projects), are blocked by freelancer marketplaces, etc. I am not risking using TransferWise to transfer money home (to a non-sanctioned individual's account in a non-sanctioned bank) out of fear of losing my account forever. This is because Western companies interpret sanctions wider than strictly required to err on the side of caution due to the aforementioned reasons.
>>However, blanket financial anonymity at scale is not an acceptable workaround
Blanket financial anonymity is the only way to prevent circumstances like today's, where entire nationalities are locked out of the global financial system, and power becomes more concentrated over time.
It's not the answer, you may have missed the other part of what I wrote.
Implementing this anonymity to allow regular guys help their families in Russia, who are now dealing with 4x price hike on basic goods, will help kleptocrats (the very guys causing that hike in the first place) finance their wars and further entrench themselves in power. Don't you see how this ultimately hurts those it ostensibly aims to help?
Regular guys will send home hundreds of USD, kleptocrats will launder billions.
Financial anonymity at scale exacerbates these asymmetries by helping those with the most money/power the most. Thinking otherwise is hoping they are clueless and don't employ teams of savvy people specifically to figure out various financing workarounds.
Those with the most power can legalize everything they do. The monopoly on violence wielded by the government tends to concentrate power. Mass-surveillance of financial transactions, or conversely, lack of private money, extends the reach of the government, and with it, the ability of the most powerful to extract resources from the general population.
Those in the centers of power don't need to launder money. They write the laws, so their income is not illicit.
To really help ordinary people in oppressed countries, the first step is to implement policies such that they only affect those who should be affected.
If you do that, cryptocurrency benefits become moot: a Russian freelancer working overseas can legally TransferWise money to help her mom, but a Putin-connected oligarch can't wire money to help the regime.
For many reasons, it's difficult: e.g., how do you verify that your Russian user does not in fact work for Gazprom? Much safer to implement a total ban on anyone connecting from a Russian IP or using a Russian bank, explicitly sanctioned or not.
However, blanket financial anonymity at scale is not an acceptable workaround. Making it simpler for kleptocrats in charge to finance questionable activities and launder money obtained through thievery and violence, it introduces more problems than it solves, and in fact props up the regime.