Documentary: Bitcoin’s Censorship-Resistance Test in Canada

The Birth of the Freedom Convoy:

On January 15, 2022, Justin Trudeau’s government imposed vaccination requirements on anyone entering Canada by land. Truck drivers transporting goods from the United States were among those affected.

Until then, the COVID measures had not prompted significant public opposition. But this measure crossed a red line for many Canadians, provoking anger among people who could no longer accept the restrictions in silence.

Truck drivers launched a major peaceful protest movement aimed at blocking roads and bringing Ottawa to a standstill. Dubbed the “Freedom Convoy“, it lasted more than a month and paralyzed the whole country. The movement called for an end to vaccine mandates and for Justin Trudeau to resign. It then took on an international dimension, inspiring similar movements in Europe, Australia and New Zealand.

The standoff between the Canadian government and the truckers led to the declaration of a state of emergency. The Trudeau government introduced extraordinary measures to restore order: censorship, fines, and frozen bank accounts…

“Financial censorship—the denial of access to banking services—is the most powerful weapon states have to punish their enemies.”

Bitcoin Magazine dans “Documentary: Bitcoin’s Censorship-Resistance Test: Canada”

Bitcoin to Help the Canadian Truckers?

This raised the question of Bitcoin’s usefulness amid a fierce confrontation between an increasingly authoritarian government and a leaderless movement.

This excellent documentary from Bitcoin Magazine shows how some protesters turned to Bitcoin fundraising campaigns in an increasingly difficult climate.

Fintech’s Submission to Political Power:

Fundraisers were quickly launched on crowdfunding platforms to support the protesters. But because these platforms were connected to the banking system, they could not be protected from censorship. A GoFundMe campaign that had raised $10 million was frozen, followed by a GiveSendGo campaign that had raised $9 million.

Canadian bitcoiners then stepped in to overcome censorship and enable recipients to receive donations.

Bitcoin and Uncensorable Donations:

Bitcoin’s advantage is the neutrality of its network. Transactions pass between nodes regardless of their nature. The transaction fee paid by the user is the only factor that matters to network participants. As long as your transaction includes a sufficient fee, miners will add it to the ledger.

It is also very easy for anyone with a smartphone or computer to accept Bitcoin payments. You just need to download a free app such as BlueWallet and create a Bitcoin receiving address in less than 5 seconds, with no sign-up required.

It makes little difference if you live in a country where Bitcoin is prohibited. You can communicate with the network anonymously through Tor. That way, neither your carrier nor your government can see the contents of the data leaving your phone.

HonkHonk Hold is the Twitter account that organized the Bitcoin fundraiser for the Canadian truckers. They ran their own Bitcoin server using Umbrel, and installed the TallyCoin app. This setup let them connect to Bitcoin without an intermediary and bypass censorship. The app also enabled them to receive bitcoin instantly and without fees over the Lightning Network.

Not Such a Virtual Currency After All…

HonkHonkHodl’s goal of 10 bitcoin was reached in 1 week, thanks to the mobilization of Bitcoiners online. Fundraising was then halted while organizers considered how to distribute the funds. The bitcoin was placed in a multisignature wallet requiring coordination among 5 participants.

The bitcoin was then distributed in person in envelopes containing the funds and instructions for accessing them. This method was practical, but also risky. Organizers had to move quickly to prevent the funds from being seized by police or intercepted by thieves.

Using Bitcoin and Privacy.

At this point, another question arises: “How did the truckers spend their Bitcoin?”

In theory, you can send the funds to an exchange, convert them to euros, and go shopping—or shop directly with Bitcoin. However, few merchants accept Bitcoin, and exchanges may refuse bitcoin associated with the Freedom Convoy.

L’application Bitrefill partly addresses this problem. It is a site for buying gift cards with bitcoin, listing major retail chains. Purchases are made in cryptocurrency without identification. In France, for example, you can exchange bitcoin for a Carrefour gift card and use it for shopping.

L’application Bisq is another way to buy and sell bitcoin peer to peer. In this example, a Canadian trucker could have sold you bitcoin in exchange for a conventional bank transfer. One advantage is that both participants can avoid identity checks known as KYC.