Indices are calculated through a ranking process made up of six categories:
- CBDC status
- crypto legality status
- cash transaction limit
- money supply growth rate
- social security
- personal income tax rate
According to the Vexl Foundation, the higher a country’s Financial Tyranny Index (FTI) is, the more control the state has over its people’s finances.
These six categories used to calculate the index are real-world examples of problems that Bitcoin addresses.
CBDCs Give Governments Full Control
Central bank digital currencies, or CBDCs, are digital versions of fiat currencies (like the U.S. dollar). Central banks control every aspect of CBDCs: the monetary supply, the price of transaction fees, who can and can’t send/receive payments — the list goes on.
Read more on the subject : Can Bitcoin win against CBDCs?
Surveillance states can use CBDCs to control their people as well, by using them in conjunction with social credit scores. China, the country with the highest FTI, has already started to implement this into their infrastructure:
Bitcoin Fights Back
Bitcoin and CBDCs are both digital currencies, but that’s about where their list of similarities ends.
Unlike CBDCs, Bitcoin is a decentralized protocol, meaning no banks or government entities can use their power to control your financial life if you use bitcoin, because no one person or entity controls it. Moreover, it is virtually impossible for a market actor to single-handedly control the value of bitcoin given the protocol’s fixed total supply of 21,000,000 coins.
Read more on the subject : Iranian Parliament Warns Central Bank of Iran: CBDC Project Unlawful and Unconstitutional, Must Be Halted
As such, bitcoin is often viewed as the enemy of any government that ranks high on the FTI list, as the decentralized digital currency is viewed as a beacon of freedom and independence in a world of ever increasing centralization and control.
It is important for the people of these nations to understand that there are alternatives to the policies imposed by their financially tyrannical governments.
By adopting bitcoin as their economic unit of account, oppressed individuals can overcome the limitations placed on them by power-hungry politicians, whose immoral actions including currency debasement continue to wreck economic havoc.
Fiat currencies have been manipulated by central banks for far too long; bitcoin puts an end to that.