BTPI will research the relationship between Bitcoin and financial freedom

O Brooks School Technology Policy Institute (BTPI) announced a $1 million project to study financial freedom in countries with authoritarian governments. Led by BTPI Director Sarah KrepsJohn L. Wetherill Professor in the Department of Government in the College of Arts and Sciences and the Cornell Jeb E. Brooks School of Public Policy, the research will employ quantitative and qualitative approaches to understand the use of Bitcoin and stablecoins by individuals around the world. world.

“If we live in a place where the government silences its critics, threatens its assets, or where we cannot trust the local banking system, we understand the importance of financial freedom for democracy,” Kreps said. “We want to study how people in these countries are using Bitcoin and stablecoins in their pursuit of financial security.”

Director of BTPI, Dr.

The innovative approach to purpose-driven research was designed to build a framework for creating a Bitcoin and stablecoin adoption index that maps and analyzes acceptance globally. Supported by funding from the Human Rights Foundation – a non-partisan, non-profit organization that promotes and protects human rights globally, with a focus on closed societies – and the Reynolds Foundation – a family foundation dedicated to supporting medical and spinal cord research and treatments, education and democracy and freedom – the project is scheduled to begin in July 2024 and end in 2026.

Reynolds Foundation President and CEO Dr. Álvaro Salas Castro MPA ’14 explained that the multimodal and collaborative nature of the investigation would lead to broader access to knowledge at a critical moment in global politics.

“The Tech Policy Institute at Cornell University’s Brooks School of Public Policy stands out as a crucial center for investigating the intricate relationship between emerging technology and global politics. Through a dedicated focus on critical issues such as artificial intelligence, cybersecurity, and regulations of digital privacy, the Institute’s interdisciplinary research aims to shed light on the complexities of our rapidly evolving technological landscape,” said Dr. Salas Castro. “As Bitcoin adoption continues to exert influence on the global economic system, the Institute’s firm commitment to fostering collaboration among academics, policymakers, and industry leaders aligns perfectly with the Reynolds Foundation’s vision of supporting a network of knowledge sharing that takes advantage of this technology for society to benefit.”

According to Professor Kreps, the project will focus on around 12 countries, including India, Nigeria, El Salvador, Indonesia and Turkey, and will investigate Bitcoin and stablecoin adoption. Kreps and his research team will partner with a large global research firm to develop and deliver surveys to 1,000 participants in each country that question not only adoption behaviors based on each country’s demographics, but also perceptions and attitudes toward regarding these digital currencies. A research team that includes undergraduate students will conduct interviews to delve deeper into the usage base.

According to HRF Chief Strategy Officer Alex Gladstein, combining survey data and qualitative research in countries where relatively little is known about the use of Bitcoin and stablecoins represents a new approach to creating a foundation of understanding about their potential for increase financial freedom around the world. world.

“Bitcoin continues to grow and become a larger part of the global economic system. Today we have nation-state adoption, widespread mining operations on every continent, exchange-traded funds (ETFs) trading in the United States, and recent highs The Human Rights Foundation has also noted that human rights groups and nonprofits are embracing Bitcoin to challenge financial repression by authoritarian regimes,” Gladstein said. “This research under the guidance of Professor Kreps will shed light on exactly who in the world is using Bitcoin and dollar substitute stablecoins, and why.”

The objectives of the financial freedom research project include:

• Increase shared understanding of the factors driving cryptocurrency adoption, usage patterns, and broader implications for financial inclusion and technological innovation.
• Assess the ability of policymakers, industry stakeholders, and community organizations to make informed decisions about regulatory frameworks, product development, and educational initiatives related to cryptocurrencies.
• Expand access to financial services and economic opportunities for individuals who are underserved or excluded by traditional banking systems.
• Increase public awareness and understanding of cryptocurrency technology, its potential benefits, risks and implications for individuals and society.

“Researchers have postulated a number of different reasons why citizens in these countries might use encryption and our research will investigate these acceptance mechanisms to understand the motivations and goals and whether these vary depending on the region or type of government,” said Kreps.

Giles Morris is assistant dean for communications at the Cornell Jeb E. Brooks School of Public Policy.

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