The Freedom Convoy in Canada: Is the Financial System Becoming a Government Weapon? Ethereum Founder: This is Exactly Why Cryptocurrencies Exist

Protests by Canadian truck drivers against mandatory vaccination continue, while authorities allowing banks to freeze related financial accounts without court orders has caught the attention of the crypto community. Ethereum founder Vitalik Buterin, Kraken exchange CEO Jesse Powell, and crypto Twitter personality punk6529 have all expressed their views on this matter.

Reasons for the Existence of Cryptocurrency

Vitalik pointed out during an interview at the ETHDenver summit that the Canadian government's efforts to block donations flowing to Canadian truckers illustrate why cryptocurrencies exist.

He expressed concern that the situation was getting out of hand, with the government cutting off the public's source of funds through financial intermediaries like banks without due process. In such cases, decentralized technology exists to make it more difficult for the government to act in such ways.

He emphasized that protesters are not above the law, and the government and law enforcement can still legally arrest specific individuals. Bypassing regulatory means through financial intermediaries is a dangerous concept. Therefore, providing decentralized alternatives to these financial institutions is a good way to mitigate the harm in similar events.

In fact, Canadian Prime Minister Justin Trudeau invoked the Emergencies Act of 1988. This is the first time in 50 years since 1970 when his father Pierre Trudeau, who was then the Prime Minister, used this law following the kidnapping of officials.

However, Carleton University professor Leah West expressed doubts on Twitter stating that the current events may not meet the definition of the Emergencies Act:

A serious threat to Canada's ability to maintain sovereignty, national security, and territorial integrity, and where no other law in Canada is adequate to deal with the situation.

Both the Canadian Civil Liberties Association and the Canadian Constitution Foundation have pointed out that Canadian rights and freedoms charter allow for the right to assemble and challenge the government legally.

Jesse Powell: Using Peer-to-Peer Exchanges

Kraken CEO Jesse Powell also condemned the Canadian authorities on Twitter:

Today someone dissents, and you seize their assets, revoke their licenses, isolate them from the financial system, and kill their pets, all without regard for laws, policies, or even basic rights.

He also mentioned that Kraken was forced to comply with orders to freeze assets, and if concerned, users should not store assets in any centralized custodial institution. Powell urged users to withdraw and engage in encrypted transactions only through P2P.

Yearn developer banteg added to Jesse Powell's statement regarding the government killing pets.

The Value of Non-Custodial Wallets

According to recent reports, cryptocurrency Twitter personality punk6529 wrote 56 tweets highlighting key points, including:

• The financial system supports everything, including the rights given to you by the constitution. He gave the example that even exercising the right to assemble and protest requires money.
• Weaponizing the financial system to address domestic dissent or even criminal justice issues sets a dangerous precedent.
• We must protect non-custodial wallets at all costs.

He stated that this event also confirmed his long-standing concerns about centralized financial systems, especially as central bank digital currencies (CBDCs) and digital currencies become more prevalent, leading to a 100% custodial financial system where freezing assets will only be a button away.

Therefore, the Freedom Convoy incident highlights the value of non-custodial wallets. He hopes that Canada can resolve this matter properly without it dramatically turning into a historic event marking the end of Canadian democracy.