Bitcoin’s Role in Protecting Democracy in Nicaragua With Félix Maradiaga

At the 2024 Bitcoin Policy Conference, Nicaraguan democracy activist Félix Maradiaga shared his views on the difficult challenges facing his country, which is under the dictatorship of Daniel Ortega.

According to Mardiaga, the people of Nicaragua are losing their freedom at an alarming rate.

“According to the Freedom in the World report, we have the unfortunate label of being the country that lost the most freedom last year,” Maradiaga told Bitcoin Magazine.

“Think of a country where you can go to jail for raising the country’s flag, writing on Twitter, receiving money from an international donor or expressing your views on social media,” he added.

“That’s the situation in Nicaragua.”

Maradiaga stated that 130 people were arrested arbitrarily for political reasons and that, in the last three years, more than 1,700 people were arrested under brutal conditions. He was one of those 1,700.

The oppressive environment has forced about 12% of the population to be displaced, according to Mardiaga.

Using Bitcoin to Fight Financial Oppression

Maradiaga is now working to rebuild the power of the democratic opposition in Nicaragua from abroad, and his advocacy includes using Bitcoin to circumvent the financial repression employed by the Ortega regime.

After thanking his wife, Berta Valle, and Human Rights Watch Chief Strategy Officer Alex Gladstein, for introducing him to Bitcoin, Maradiaga recounted an example of how technology has helped pro-democracy freedom fighters in Nicaragua.

In 2018, when his team of human rights defenders compiled reports on the situation in Nicaragua, those involved in the process were compensated through traditional financial channels.

The Ortega regime was able to obtain those financial records with the help of the European Union, the United Nations and the United States Agency for International Development (USAID), which led to the prosecution of those involved in the efforts of Mardiaga’s group.

“We learned early on that we couldn’t use the normal banking system because financial repression of political control is actually one of the areas where dictators have learned a lot. They have become aristocrats,” he explained.

To counter this, Maradiaga and his colleagues turned to Bitcoin.

“Bitcoin is the only tool that doesn’t break from financial pressure from tyrants,” Maradiaga said.

Abuse of Anti-Money Laundering Laws

Reflecting on global policy, Maradiaga discussed the broader legal and regulatory implications for Bitcoin.

He cited the Magnitsky Justice Campaign, which uses sanctions against repressive regimes, noting that these regimes retaliate by closing the bank accounts of freedom fighters, often under the guise of international money laundering laws mandated by institutions such as the International Monetary Fund (IMF).

He went on to explain that anti-money laundering laws are often used to target corrupt officials.

“We have seen 3,400 NGOs shut down using this law,” explained Maradiaga.

He argued that the methods developed after World War II are no longer valid and that embracing new technologies like Bitcoin is important.

Policy Makers Must Educate Themselves About Bitcoin

Maradiaga urged policy makers around the world to educate themselves about Bitcoin.

“Policymakers around the world who are skeptical about Bitcoin must acknowledge the fact that it is completely understandable to have questions [they] I don’t understand any technology,” he said. “When you learn about this technology, you really see that this is a tool that I think is more effective in dealing with these challenges than traditional funds. [system].”

The Global Fight Against Dictators

Maradiaga reiterated that the struggle in Nicaragua is part of a larger issue.

“Dictators work together,” he said.

“They share technology. They make a living with weapons and oppression,” he added.

“Those of us who believe in freedom, human dignity, human rights, and free and fair societies, we need to cooperate with each other.”

Maradiaga shared that people can join his efforts at the World Liberty Congress.