BTPI will study the relationship between Bitcoin and financial freedom

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

“If you live in a place where the government silences its critics by threatening their assets or where you can’t trust the local banking system, you understand the importance of financial freedom to democracy,” Kreps said. “We want to study how people in these countries use Bitcoin and stablecoins in the pursuit of their financial security.”

BTPI Director Dr. Sarah Kreps

The innovative targeted research approach is designed to build a framework for creating a Bitcoin and stablecoin adoption index that would map and analyze adoption globally. Supported by funding from the Human Rights Foundation – a nonpartisan, nonprofit organization that promotes and protects human rights globally, with a focus on closed societies – and the Reynolds Foundation – a family foundation dedicated to supporting research and medical and spinal cord treatment, education and democracy and freedom: the project will start 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 inquiry will 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 represents 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 digital privacy regulations, 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 ongoing commitment to fostering collaboration among scholars, policymakers, and industry leaders aligns perfectly with the Reynolds Foundation’s vision to support a world-wide sharing network. knowledge that leverages this technology for societal benefit.”

According to Professor Kreps, the project will focus on around 12 countries, including India, Nigeria, El Salvador, Indonesia and Turkey, and will investigate the adoption of Bitcoin and stablecoins. Kreps and his research team will partner with a major global research firm to develop and deliver surveys to 1,000 participants in each country that question not only adoption behaviors based on demographics within each country, but also perceptions and attitudes towards these digital currencies. A research team including undergraduate students will then conduct interviews to delve deeper into the basics for use.

According to Alex Gladstein, Chief Strategy Officer at HRF, 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 basis of understanding about their potential to improve financial freedom around the world. world.

“Bitcoin continues to grow into an increasingly important part of the global economic system. Today we have nationwide adoption, widespread mining operations on every continent, spot trading of Exchange Traded Funds (ETFs) in the United States, and recent all-time highs of price. The Human Rights Foundation has also observed that human rights groups and nonprofits are adopting Bitcoin to challenge financial repression by authoritarian regimes,” Gladstein said. “This research led by Professor Kreps will illuminate exactly who in the world uses Bitcoin and dollar-replacing 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 regarding regulatory frameworks, product development, and educational initiatives related to cryptocurrencies.
• Expand access to financial services and economic opportunities for individuals who are disadvantaged or excluded from traditional banking systems.
• Increase public awareness and understanding of cryptocurrency technology, its potential benefits, risks and implications for individuals and society.

“Researchers have hypothesized a number of different reasons why citizens in these countries might use cryptocurrencies, and our research will examine these adoption mechanisms to understand motivations and goals and whether these vary by region or type of government,” Kreps said.

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

Source