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Law Decoded: Bitcoin’s censorship resistance capacity enters the spotlight, Feb. 14–21

Published 02/21/2022, 05:17 PM
Updated 02/21/2022, 07:20 PM
© Reuters

Amid the barrage of last week’s regulatory news, from rumors of Joe Biden’s upcoming executive order on digital assets to another round of the Russian government’s crypto tug of war, the storyline that was arguably the most consequential for the mainstream narrative on the social effects of crypto has been the one around the Canadian government’s standoff with the Freedom Convoy. The government’s invocation of emergency powers to put down a protest movement — combined with the movement’s financial infrastructure being one of the main attack vectors — has led many observers to appreciate with renewed vigor Bitcoin’s capacity to resist state financial censorship.

If a government as “civilized” as Canada’s can arbitrarily cut off a group it doesn’t like from the financial system, then any state can potentially do the same to any group, the argument goes. While there is, as always, much more nuance to this situation. What matters is a simple, digestible notion with which the global audience walks away from the shocking news. So far, the main takeaway seems to be this: Financial censorship is scary, but crypto offers a way around it.

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