GOVERNMENTS SCRAMBLE TO MANAGE REGULATE, AND THROTTLE CRYPTO
Reason magazine|January 2023
MOST DANGEROUSLY OF ALL, THEY'RE STARTING TO MAKE THEIR OWN CENTRAL BANK DIGITAL CURRENCIES.
BRIAN DOHERTY
GOVERNMENTS SCRAMBLE TO MANAGE REGULATE, AND THROTTLE CRYPTO

ON JANUARY 15, 2022, the Canadian government closed its borders to unvaccinated American truckers and began requiring domestic truckers to show proof of COVID vaccination when crossing northward, infuriating drivers and snarling North American trade. Within two weeks, thousands of "Freedom Convoy" protesters filled the capital city of Ottawa, demanding the requirement be lifted. Officials responded by branding them "extremists," even "terrorists," and quickly began treating them as such. On February 4, the Canadian government pressured the crowdsourcing service GoFundMe the truckers' seemingly decentralized source of financing-into abruptly stopping further transfers.

Ottawa was just getting started. On February 14, the federal government invoked the Emergencies Act, which let it freeze any bank account or legal financial instrument that could be traced to the truckers. So convoy supporters turned to bitcoin, the decentralized, peer-to-peer, blockchain-enabled digital currency whose whole raison d'etre-maintaining a separation between currency and government-seemed designed for moments like this.

Or not. Most bitcoin transactions-75 percent, according to an October 2021 working paper published by the National Bureau of Economic Research-are conducted through cryptocurrency exchanges. These, being legally licensed businesses (at least in theory), are vulnerable to the same interference as old-school financial institutions. The Canadian government demanded that the exchanges block all crypto wallets that could be linked to the protesters, and it initially seized the contents of some outright. "We will be forced to comply," tweeted Jesse Powell, then-CEO of major crypto exchange Kraken. "If you're worried about it, don't keep your funds with any centralized/ regulated custodian. We cannot protect you. Get your coins/ cash out and only trade p2p."

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM REASON MAGAZINEView all
Gimme Shelter  - The U.S. confronts a growing homelessness problem. Does Miami have the answer?
Reason magazine

Gimme Shelter - The U.S. confronts a growing homelessness problem. Does Miami have the answer?

The U.S. confronts a growing homelessness problem. Does Miami have the answer?

time-read
10+ mins  |
July 2024
AI Is Coming for Hollywood's Jobs
Reason magazine

AI Is Coming for Hollywood's Jobs

But so is everyone else.

time-read
10+ mins  |
June 2024
AI Can Do Paperwork Doctors Hate
Reason magazine

AI Can Do Paperwork Doctors Hate

With help from AI, doctors can focus on patients.

time-read
4 mins  |
June 2024
Antitrust May Smother the Power of AI
Reason magazine

Antitrust May Smother the Power of AI

Left alone, AI could actually help small firms compete with tech giants.

time-read
3 mins  |
June 2024
A Brief, Biased History of the Culture Wars
Reason magazine

A Brief, Biased History of the Culture Wars

THE FIRST PAR AGR APH of the book jacket lays it out: “There is a common belief that we live in unprecedented times, that people are too sensitive today, that nobody objected to the actions of actors, comedians, and filmmakers in the past.

time-read
5 mins  |
July 2024
FAMILIES NEED A VIBE SHIFT
Reason magazine

FAMILIES NEED A VIBE SHIFT

THE AUTHORS OF FOUR NEW BOOKSWITH 24 KIDS BETWEEN THEM-SAY THE AMERICAN FAMILY NEEDS A COURSE CORRECTION.

time-read
10+ mins  |
July 2024
"The Past Is There To Teach Us What Can Happen'
Reason magazine

"The Past Is There To Teach Us What Can Happen'

Hardcore History's Dan Carlin on hero worship and moral assumptions in the study of the past

time-read
10+ mins  |
July 2024
Cutting Off Israel
Reason magazine

Cutting Off Israel

ENDING U.S. AID WOULD GIVE WASHINGTON LESS LEVERAGE IN THE MIDDLE EAST. THAT’S WHY IT’S WORTH DOING.

time-read
10+ mins  |
July 2024
WHAT CAUSED THE D.C.CRIME WAVE?
Reason magazine

WHAT CAUSED THE D.C.CRIME WAVE?

GOVERNMENT MISMANAGEMENT, NOT SENTENCING REFORM OR SPARSE SOCIAL SPENDING, DESERVES THE BLAME.

time-read
10+ mins  |
July 2024
States Turn Their Backs on Criminal Justice Reform
Reason magazine

States Turn Their Backs on Criminal Justice Reform

IT WAS IMPOSSIBLE to avoid the “strange bedfellows” cliché when reading about the criminal justice reform movement in the 2010s.

time-read
5 mins  |
July 2024