finbold.com
The Ukrainian parliament has passed the first reading of a bill to tighten mobilization rules and force people to war. If approved, these rules will allow the government to freeze bank accounts and people’s assets when caught dodging the draft.
Ukraine proposed this draft bill on January 31 due to a plummet in the number of volunteer soldiers. Reuters reported the amended draft bill on the occasion and this most recent update on February 7.
Notably, these tighter rules will affect Ukrainians living abroad, preventing them from accessing consular services with outdated military registration. The bill also proposes to lower the compulsory mobilization to 25 years old instead of the current 27.
In particular, Ukraine’s unprecedented move to freeze bank accounts and people’s assets shows how governments can use monetary control and centralized finance systems to impose coercive measures against their people.
The United States could have helped Ukraine to freeze people’s assets
Interestingly, Mike Brenz, Executive Director at Foundation for Freedom Online, commented on the case. Brenz explained that a recent decision of the United States Security Department might help Ukraine to freeze people’s assets.
Essentially, this decision forced Ukrainians to tie all their financial assets to their smartphones, easing the bill enforcement.
This is insane, the US State Dept forced all Ukrainians to tie their financial assets to their smartphones by developing the DIIA “State-In-Smartphone” app for Ukraine, and now Ukrainians who try not to die will have all their assets seized. https://t.co/X0w5bSusx4 pic.twitter.com/dsV59ZchQy
— Mike Benz (@MikeBenzCyber) February 7, 2024
Bitcoin and cryptocurrencies, as financial alternatives
In this context, Jameson Lopp, Co-founder and CTO of Casa HODL, pointed to self-custody Bitcoin (BTC) to protect people’s assets.
Better to get some bitcoin in self custody and not need it than to need it and not have it.https://t.co/kZBoriURnM
— Jameson Lopp (@lopp) February 7, 2024
The decentralized finance (DeFi) landscape has improved in the past decade, allowing people to own financial assets that can not be easily frozen or seized. Cryptocurrencies exist in decentralized networks protected by strong cryptography, which provides monetary sovereignty for their owners.
If this bill passes, people in Ukraine who do not want to fight in this war might be encouraged to seek financial alternatives. However, the cryptocurrency market is not entirely made of “unfreezeable” projects. For example, Web3 smart contract controllers like Tether (USDT) or Circle (USDC) can freeze these tokens from any crypto wallet.
Moreover, Bitcoin fees have recently surpassed the average global daily income, making it infeasible for the majority to have it in self-custody securely.
Other cryptocurrencies can offer similar advantages to Bitcoin, with lower fees, lower confirmation time, and more privacy. Curiously, Monero (XMR) is a known privacy coin, while Litecoin (LTC) has dethroned Bitcoin in payment services. Additionally, Grok AI suggested Nano (XNO) as the most suitable cryptocurrency for payments.
Therefore, people looking for financial alternatives must do their own research and understand the tools they want to use as money.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.