The Netherlands-based non-profit organization “Belarusian Solidarity Fund” began paying compensation in Bitcoin to Belarusians who were dismissed from enterprises for active civic positions and participation in protests against President Alexander Lukashenko’s government.
The fund was founded by DeepDee AI-solutions founders Yaroslav Likhachevsky and Alexey Kuzmenkov. They consider the results of the Belarusian presidential elections falsified, and the actions of authorities and security forces against peaceful protesters illegal.
“The state is pressuring plant management, which in turn threatens strikers with mass layoffs—some are fired demonstratively in front of the workforce. The current government is simply trying to scare ordinary people, and we are trying to neutralize their threats,” Yaroslav Likhachevsky told ForkLog.
According to the founders, their names already appear in security services’ documents, but it is unclear whether arrest warrants have been issued.
In the first week of the fund’s existence, it attracted €1m. By the time of writing, this sum had surpassed €2m. Funds are being raised through a fundraising program from Facebook, PayPal, Revolut, Bitcoin and Ethereum. Donations in BTC and ETH remain modest here and here. The fund’s work is carried out by a team of volunteers.
Three categories of people may apply for payouts:
- employees dismissed for taking an active civic stance from state-owned enterprises;
- civil servants and security personnel who left their posts in protest against the current government;
- striking but not laid-off workers of state-owned enterprises who have no replacement (for example, miners).
“Miners can’t easily be fired, since no one will go into the mine except them. But cutting their salaries for their civic position is easy. We help such workers. They form informal committees at the plants, elect a leader, and we work with him,” Likhachevsky described the scheme.
The single payout amounts to €1,500. Applicants must prove dismissal or participation in protests at their workplaces, and publicly declare their civic stance in a video address.
“Authorities are actively trimming inflows from foreign accounts, conducting border searches to prevent currency from entering. Therefore we decided to use Bitcoin as transport.”
The fund provides recipients with instructions and explains how to exchange Bitcoin for fiat, though it does not recommend doing so amid sharp devaluation.
“Lukashenko is trying to stop the ruble from depreciating—restricting liquidity and banning banks from issuing both retail and corporate loans. A shortage of foreign currency in exchange offices is already evident, but this will have only a short-term effect. If the restrictions are not lifted, a shadow currency market will emerge. We have seen this in 2011,” says Likhachevsky about the country’s situation.
In Lithuania’s Foreign Ministry they have already stated that Belarus’s economy is on the brink of collapse, and in response to sanctions Lukashenko threatened the Baltic states with a blockade of freight shipments.
80% of Belarus’s sovereign debt is denominated in US dollars and only 5% in Russian rubles. The depreciation of the Belarusian ruble threatens the country with new debt.
The founder of the Belarusian Solidarity Fund believes that under prolonged liquidity restrictions and a ban on lending, small and medium businesses could draw liquidity from a parallel crypto-economy based on a stablecoin.
“We will urge businesses and citizens to use a stablecoin for settlements to exchange liquidity. The state will not be able to influence this in any way.”
The role of cryptocurrencies in the peaceful protest is also discussed by Evgeniy Romanenko, ambassador of Trustee Wallet in Belarus, whom was detained immediately after the elections and placed in pre-trial detention for seven days:
“Decentralization is the defining feature of the Belarusian protest in 2020. Remember that Belarus is an IT nation with global renown. Belarusians have learned to communicate effectively via Telegram and Viber. What prevents them from transferring money to each other 24/7/365 in Bitcoin and other cryptocurrencies? Nothing. If the internet is turned off, Web 3.0 will come to the rescue. Under Decree No. 8 on the development of the digital economy, cryptocurrency transactions for individuals in Belarus are legal. Dismissed workers are already receiving support in Bitcoin. The next step is selling goods and services for cryptocurrency, bypassing fiat money. Dozens of shops are already prepared to price in cryptocurrencies. Before our eyes, a Belarusian crypto-economy is being born, in which millions of Belarusians will be involved within a year or two. There is no room for the state there—just as there is no room for an OMON officer on a date for a couple in love.”
Earlier, amid protests linked to the Belarusian presidential election, residents were cut off from the internet for several days were cut off. Authorities attributed it to DDoS attacks and foreign interference, but experts say the outages were caused by state providers—Beltelecom and NCTS/NTC.
Daily losses from the internet blackout in Belarus were estimated at $56 million.
For more on available ways to bypass blocks read the link below.
Following the internet blackout in Belarus: how to bypass blocks and when it’s impossible to do so
Support the Belarusian Solidarity Fund in Bitcoin and Ethereum can be done here and here.
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