Europe’s right-wing political groups find reason in crypto

The European crypto scene has gained a lot of traction in recent years, with a surge in interest in and adoption of cryptocurrencies and blockchain technology. While the crypto industry is often associated with decentralization, innovation, and financial freedom, it is not immune to various political ideologies and influences, and right-wing movements are no exception.

The appeal of cryptocurrencies for right-wing politicians in Europe may stem from several factors. Right-wing ideologies often prioritize individual freedoms and limited government intervention. Cryptocurrencies, with their decentralized nature, offer the potential for financial sovereignty by giving individuals control over their money without relying on traditional financial systems or government regulations.

Right-wing politicians may also see cryptocurrencies as a way to challenge the existing financial establishment and its perceived bias or control. Bitcoin (BTC), in particular, emerged after the 2008 financial crisis, a crisis that led many to lose faith in traditional financial institutions and government monetary policy.

In addition, many were concerned about central banks and their influence on monetary policy, and Bitcoin’s decentralized nature appealed to those advocating for alternative monetary systems beyond the control of the central bank.

Bitcoin as “alternative for Germany”

For example, a German exit from the euro and a return to the German mark (the country’s former currency) is a well-known demand of the right-wing populist political party Alternative for Germany (AfD). While there is no official or clear strategy regarding cryptocurrencies within the anti-euro party, some members have clearly expressed their positive attitude towards Bitcoin.

For example, AfD leader Alice Weidel has attended several Bitcoin conferences, called herself a “Bitcoin entrepreneur” and wanted to launch a Bitcoin startup. Even Aaron Koenig, a German entrepreneur and founder of physical crypto exchange Bitcoin Exchange Berlin, took the stage with Weidel and both presented their vision of “money without a state.”

The AfD’s priority for crypto is also reflected in its behavior in the Bundestag, Germany’s parliament. On several occasions, the AfD has submitted “Kleine Anfragen” (literally “small requests”) to the government. This instrument of parliamentary procedure requires an official response from the Bundestag and is often a way for opposition parties to account for specific actions or to ask why other measures have not been taken.

For example, the party asked a “small question” about crypto donations for Ukraine, how a cryptocurrency could replace the previous currency, what effects it would have on the banking system, and how much Bitcoin the German federal authorities own. AfD also opposed a proposed Bitcoin ban during discussions among European lawmakers last year.

Verbotskultur der #Internet– Ausdrucker: #Grune, #SPD and #Left woolen #Bitcoin forbid! #mica

Der #BTC lässt sich nicht verbieten and also wir bleiben dabei: #Krypto-Währungen sollten von Staatlicher Regulierung verschont bleiben!

More information: pic.twitter.com/vW6QLKlP4k

— AfD (@AfD) March 14, 2022

The concept of cryptocurrency is in some places linked to the right-wing – and partly radical – views of the AfD.

For years, some experts, such as David Golumbia — a professor of digital studies at Virginia Commonwealth University who researches the politics of cryptocurrency — have warned that blockchain could be hijacked by right-wing and libertarian groups.

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According to Golumbia, blockchain technology and cryptocurrencies could be the realization of their vision of a world without government control. A former member of the Hayek Society, Weidel belongs to the radical economic liberal wing of her party. The Hayek Society is named after the Austrian economist Friedrich August von Hayek, who advocated a free market with as little government intervention as possible.

Support for crypto among right-wing parties in Europe

It is not just German right-wing politicians who have shown interest in Bitcoin and blockchain technology as potential disruptors of traditional financial systems, with the leaders of the Dutch right-wing parties Party for Freedom (PVV) and Forum for Democracy (FvD) — Geert Wilders and Thierry Baudet, respectively – also positive on the subject.

Baudet even want to to turn the Netherlands into a Bitcoin hub and released two NFT series about its battle against World Economic Forum founder and CEO Klaus Schwab. Baudet is a fierce critic of the WEF, he believes leads the world in the wrong direction and poses a serious threat to individual freedom.

— Thierry Baudet (@thierrybaudet) May 3, 2023

Polish politician Jaroslaw Gowin and his centre-right party Agreement – ​​formerly known as Poland Together – were part of the ruling United Right coalition from 2015 to 2021. member of parliament.

When Gowin was the leader of the agreement party, he expressed a positive attitude towards cryptocurrencies and recognized their potential to promote financial innovation. The politician also consulted with many people from the industry about cryptocurrencies and blockchain. For example, the party held a meeting where Prime Minister Gowin listened to the recommendations of industry experts, including economist Krzysztof Piech and Filip Pawczynski, president of the Polish Bitcoin Association.

Nigel Farage, a prominent figure in British politics and former leader of the right-wing pro-Brexit UK Independence Party, has also expressed an interest in cryptocurrencies.

In an interview with Cointelegraph in 2022, Farage — also a former member of the European Parliament — said he first learned about Bitcoin 10 years ago and shared his vision of the possible future of Bitcoin adoption in Europe : “What happens in America, happens here first [in Europe], at. There’s going to be a very, very big change here in the next two or three years, and it is [Bitcoin] becomes a trusted medium of exchange.”

Farage also believes that Bitcoin has gained appeal as an alternative to existing financial infrastructure given the latter’s inefficiency, high cost and slow speeds.

Other right-wing politicians have not made any specific statements about cryptocurrencies, but are still taking steps to embrace digital currencies. Viktor Orbán, the prime minister of Hungary and leader of the right-wing Fidesz party, and his government are currently considering the potential benefits of launching a central bank digital currency. Hungary also appears to be warming to crypto across the board, with the government revealing plans to cut taxes on crypto trading from 30.5% to 15% in 2021 as part of an economic recovery program.

Right-wing extremists rely on crypto payments

Not only right-wing politicians have discovered cryptocurrencies, right-wing extremist movements also use crypto. In 2022, the Middle East Media Research Institute (MEMRI) published a report on the massive increase in the use of crypto payments by far-right groups in recent years.

Crypto payments are not a new tool for ultra-nationalists and European extremist groups who proclaim the superiority of the “white race” and advocate for a “white” Europe and North America. In fact, according to the MEMRI, they are among the early adopters of the technology, accepting BTC donations as far back as 2012.

The United States-based Southern Poverty Law Center has further compiled a list of extremist groups that accept crypto donations.

Ultranationalist and extremist groups actively use cryptocurrencies not only for reasons of convenience and ideology – and because they are excluded from traditional and mainstream online banking systems – but also because money held in crypto cannot be accessed or seized by anyone.

So, is crypto a right-wing move?

Does all this mean that crypto is right-wing in Europe? Not really.

While crypto itself is not inherently right or left, it is not devoid of ideology, nor is it completely free of political views – even if the political relationships are indirect. Politicians can like it or hate it regardless of their political affiliation, and support for cryptocurrencies among politicians is not limited to those leaning to the right. For example, the German liberal, pro-free market Free Democratic Party also advocates a friendly policy towards cryptocurrencies.

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While the European crypto scene is not inherently right-wing, there are notable examples of right-wing influence within the community, according to the MEMRI report, which also argues that it is critical to address these concerns by promoting education, regulation and ensure that the crypto space remains inclusive, transparent, and aligned with democratic principles.

MEMRI further stated that social media platforms and online communities should take proactive steps to curb hate speech, disinformation and extremist content while promoting healthy, constructive dialogue.