Restricting financial freedoms can have major implications for both individuals and societies. Many negative consequences may arise, such as slowing economic growth, lack of investment, political tensions, the rise of the black economy, and limiting the freedoms of individuals. Especially in periods when such restrictions increase, the role of cryptocurrencies may emerge as a balancing factor for these negative effects.
The decentralized and global structure of cryptocurrencies can be considered as an alternative in cases where financial freedoms are limited. But this depends on how governments approach cryptocurrencies. Some states may view the uncontrollable nature of cryptocurrencies as a threat and ban or impose strict regulations on these currencies. However, such bans and restrictions may not be fully effective due to the nature of cryptocurrencies.
If states choose to close cryptocurrency exchanges, this could affect cryptocurrency holders. However, the underlying technology of cryptocurrencies allows individuals to transact directly with each other. This is possible through alternative methods such as peer-to-peer exchanges, decentralized exchanges, local cryptocurrency exchange services and cryptocurrency ATMs.
However, one of the biggest challenges in using cryptocurrencies relates to reliability and security. Especially in an environment where there are no central exchanges, individuals need to take extra precautions to ensure they can trade with each other safely.
As a result, cryptocurrencies can offer new opportunities for individuals in environments where financial freedoms are restricted. However, in order to fully utilize these opportunities, both individuals and states need to be conscious and careful about adapting to this new technology.
