The Canadian Freedom Convoy and Bitcoin

The late January 2022 protest began with a convoy of truck drivers congregating in Ottawa. Canada has become one of a growing list of nations facing backlash from citizens over Covid regulations. Protests began in response to new laws for cross-border truckers that stipulate mandatory vaccine and quarantine requirements.

Government Crackdown

Instead of listening to the concerns of the protestors, the Canadian prime minister, Justin Trudeau, starts with a crackdown against anti-COVID-19 mandate "Freedom Convoy" protesters. It only resulted in the protest escalating. To counter the escalation the Canadian government invoked emergency powers that allows them to freeze bank accounts. They actively started freezing the bank accounts of the protestors and those supporting them. They also crackdown on crowdfunding platforms such as GoFundMe and GiveSendGo. And now Trudeau is going after cryptocurrency donations being sent to some truckers. The goal here is simple: The government wants to cut off the protesters from money and stop people from funding a cause the government dislikes.

In response to the crackdown on funding, Canadians have been reportedly withdrawing money from bank accounts in fear of assets being frozen. Fear for a bank run exists. Bank runs are self-perpetuating. As more people withdraw funds, the chances of a bank default rise, leading to further bank withdrawals. Without government intervention, this could lead to bankruptcies, in a worst-case scenario.

Bitcoin Alternative

With Canadians reportedly turning to Bitcoin ( BTC ) and other cryptocurrencies, the government started to exert pressure on regulated exchanges to also freeze crypto accounts. While Bitcoin’s very ethos of decentralization favours those looking to be free of the government's power grabs, the regulation of crypto exchanges gives authority to the government.

There is no Bitcoin HQ - centralized authority or company - that controls the cryptocurrency. However, there’s a catch. Bitcoin is only censorship-resistant under certain conditions. If you hold your Bitcoin through common third-party exchanges such as Coinbase, then there is still a central authority that could be coerced to confiscate funds. This is why a popular saying has emerged in the online cryptocurrency community: "not your keys, not your crypto." Basically, you must have a noncustodial wallet — hold your own "keys" — to ensure that your Bitcoin cannot fall victim to financial censorship.

To gain more power in the world of cryptocurrencies the Canadian lawmaker introducing a Bill to create a regulatory framework. Bill C-249 is titled “An Act Representing the Encouragement of the Growth of the Cryptoasset Sector”. The Bill acknowledges that crypto assets have significant economic and innovative potential for Canada. The purpose of the Bill is to focus policy “on lowering barriers to entry into the sector”. Additionally, the bill aims to “protect those working in the sector, and minimize administrative burden ”.

In the opinion of Layah Heilpern - author of Undressing Bitcoin - "If you hold Bitcoin in the correct way, meaning taking full ownership, taking self custody, your money cannot be taken. Bitcoin is censorship-resistant. I've had my funds frozen before because banks don't like crypto. As a result, I use my Bitcoin to keep my company going and keep everyone paid."

Sources
https://www.washingtonexaminer.com/restoring-america/faith-freedom-self-reliance/how-bitcoin-can-help-us-escape-canadas-dystopian-financial-censorship
https://www.fxempire.com/news/article/canadians-go-bitcoin-btc-as-government-targets-bank-accounts-905519