The Network State Podcast #32 – Alex Gladstein

Date: January 15, 2026
Host: ns.com (A)
Guest: Alex Gladstein (B)
Episode Topic: Exploring the broken global fiat system, the impact of Bitcoin and stablecoins, “financial privilege,” debt colonialism by major institutions, and prospects for network states and freedom technologies.

Episode Overview

In this engaging episode, Balaji Srinivasan (ns.com) welcomes Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation and author of “Check Your Financial Privilege.” The conversation delves into the “golden billion,” why individuals in collapsing or autocratic economies are flocking to Bitcoin, the systemic flaws of the fiat monetary system, the humanitarian and structural effects of stablecoins, debt colonialism led by international institutions, and the future prospects of network states and digital voluntarism.

Key Discussion Points & Insights

1. Understanding Financial Privilege & the Global Money Divide

• Book Discussion: Alex introduces “Check Your Financial Privilege,” centered on why people in unstable economies and police states adopt Bitcoin out of necessity, as opposed to those in countries with “financial privilege” ([00:03–01:56]).

• Core Argument: Only about one billion people live in countries with property rights, free speech, open capital markets, and working fiat systems; the remaining seven billion face monetary dysfunction daily.

  Quote:
  “For about 7 billion people, money's broken every day, and it really sucks to deal with. And a lot of them are starting to turn to bitcoin.” — Alex Gladstein [01:36]

• Host’s Nuance: Balaji offers a partial disagreement, arguing that many economies outside the “golden billion” aren’t as “third world” as often portrayed and that wealth and government quality are not always tied ([01:56–03:24]).

2. Case Studies: Bitcoin in Collapsing Economies

• Examples from Venezuela, Lebanon, Nigeria, and Turkey where local currencies have eroded and Bitcoin surged as a lifeline ([04:13–05:21]).

• Turkey is discussed as an “edge case” where strong infrastructure contrasts with severe currency inflation.

  Quote:
  “Turkey ... operates even as it's got these crazy inflation rates. I can't figure out Turkey myself.” — ns.com [04:43]

3. Stablecoins: Humanitarian Tech or State Power Amplifier?

• Legalization & Proliferation: Stablecoins are emerging as solutions in inflating markets, much like local news migrated online and lost to centralized platforms ([05:21–06:10]).

• USD’s Double-Edged Sword: Stablecoins act as both “band-aids” and amplifiers of US dollar hegemony, with massive purchases of American debt; in 2025, only JP Morgan and China bought more US debt than stablecoin issuers ([07:11–07:40]).

• Distinction: Stablecoins serve humanitarian needs (“guaranteed lose-money coins”), while “Bitcoin is freedom technology” — uncensorable, scarce, and increasingly private ([07:40–08:17]).

  Quote:
  “Stablecoins are a humanitarian technology. Bitcoin is freedom technology. And I think there's a big distinction.” — Alex Gladstein [07:56]

• KYC and Jurisdiction: The “swappability” of on-chain stablecoins is valuable for now (exit is possible), but Alex warns about inevitable “shotgun KYC” that could undermine these freedoms ([09:23–10:25]).

4. The Reality of Stablecoin Competition & Institutional Resistance

• Attempts by Large Corporates: Balaji is skeptical about newer corporate stablecoins from companies like Stripe, due to their latecomer status, misunderstanding of crypto culture, and tendency to “nerf” products for compliance ([11:56–14:33]).
• The Profitable Powerhouse: Tether’s business model (earning on US treasuries from deposits, rather than their own capital) is dissected ([14:33–15:22]).

5. Bitcoin: Separating Money from State

• Long-term Vision: Alex is committed to “separating money from state,” arguing fiat currency technology has devolved into a tool for control and surveillance.

  Quote:
  “Money... has been on a track evolving from a tool of relative freedom … [to] a tool of control and surveillance. And finally we have a new track ... towards freedom.” — Alex Gladstein [15:31–16:31]

• Historic Parallels: Stories of overt devaluation (e.g. Malawi, FDR-era US), reinforcing that currency crises are the norm for most people ([16:31–17:12]).

6. Debt Colonialism: The IMF, World Bank, and Development Traps

• Book “Hidden Repression”: Explores how post-Bretton Woods institutions, via debt traps, replaced colonialism with “debt colonialism,” locking poor countries into cycles of borrowing and structural adjustment ([22:15–25:27]).
• Mechanism: Loans force developing nations to use their aid to pay companies from creditor nations, leaving them indebted with minimal local benefit ([27:20–29:37]).
• Comparisons to Mortgage Crisis: Discussion of whether such systems are “evil” or “stupid,” concluding these are emergent properties of entrenched systems rather than deliberate conspiracies ([31:53–34:33]).

7. Escaping the Trap: Bitcoin as an Exit

• Practical Examples: HRF supports Bitcoin infrastructure worldwide—non-custodial wallets, Lightning payments, and bridging solutions so users can live on Bitcoin even in repressive states ([35:48–39:43]).

• Advocacy for US Adoption: Alex argues a Bitcoin standard embodies the American spirit more than the current fiat system and would be an advantage in competing with authoritarian regimes ([39:43]).

  Quote:
  “If you have money that provides you free speech, private property and open capital markets, guess what? That's what America's DNA is.” — Alex Gladstein [38:41]

8. The Network State & Voluntarism: Bringing the Internet into the Physical World

• Vision: Balaji sees the next phase as voluntary, opt-in Internet-native communities—Bitcoin beach, physical network states—where digital consent translates to real-world governance ([40:04–41:27]).
• Bitcoin Communities: Such communities form where fiat has failed, providing real needs—from sovereign micro-economies to financial aid during crises ([41:27–42:42]).

9. Decentralized Social, Payments, and Next-Gen Privacy Tech

• Nostr: Protocol for algorithm-free, permissionless social interactions, integrated with instant Bitcoin micropayments ([43:13–43:44]).

• E-cash & Lightning Evolution: New structures like E-cash mints, payment pools (Spark, Ark), and Lightning as a global clearing layer, enabling scalable, private, offline Bitcoin payments ([44:24–46:45]).

• BitChat App: Bluetooth-based local messaging and payments (useful in protests or network outages), illustrating the emergence of a privacy-first, censorship-resistant “tech constellation” ([47:16–49:17]).

  Quote:
  “There’s like a constellation of technologies growing around bitcoin that are making it very powerful... and it's very exciting to see.” — Alex Gladstein [50:17]

Notable Quotes & Moments by Timestamp

• “[Financial privilege is] the fact that about a billion people live in countries where money works ... the other 7 billion live in countries where money's broken every day.” — Alex Gladstein [01:29]
• “Stablecoins are a humanitarian technology. Bitcoin is freedom technology.” — Alex Gladstein [07:56]
• “KYC at entry or exit ... but as soon as you start to get KYC on chain, ... they lose the value that I care about.” — Alex Gladstein [09:23]
• “I'm in this because I think Bitcoin separates money from state.” — Alex Gladstein [15:22]
• “Inflation is taxation without legislation.” — ns.com [16:31]
• “[The IMF and World Bank] create debt traps for these countries ... it's called the double loan … happening all over the world.” — Alex Gladstein [27:20]
• “Now, we have a peaceful way for people to get out. ... we deploy about a million dollars in bitcoin every quarter [with HRF].” — Alex Gladstein [35:48, 38:55]
• “BTC and CCP are at two opposite ends of the spectrum—total freedom, total control.” — ns.com [39:43]
• “Voluntary opt-in societies ... communities, cities, and perhaps eventually countries, starved societies and potentially network states.” — ns.com [41:02]
• “There's a constellation of technologies growing around bitcoin that are making it very powerful... it's very exciting to see.” — Alex Gladstein [50:17]
• “When people say, bitcoin saved my life, it's real, and it's happening all over the world.” — Alex Gladstein [51:15]

Important Segments by Timestamp

• Bitcoin as lifeline in unstable economies: [00:14–01:56]
• Role and risk of stablecoins: [05:21–10:25]
• Corporate and institutional stablecoin attempts: [11:56–15:22]
• Bitcoin vs. State Control—philosophy and history: [15:29–17:27]
• Debt colonialism and global financial structure: [22:15–29:37]
• HRF’s global Bitcoin activism: [35:48–38:55]
• Bitcoin and US strategic advantage: [38:41–39:43]
• Network state, digital consent and real-world communities: [40:15–42:42]
• New tech layers: Nostr, E-cash, BitChat: [43:13–49:17]
• Closing thoughts: constellation of freedom tech and lived Bitcoin experiences: [50:17–51:40]

Summary & Takeaways

This episode is a rich exploration of how broken money systems, “financial privilege,” and institutional debt traps are driving individuals toward Bitcoin as not just an investment but a tool for survival and freedom. While stablecoins offer humanitarian relief, they amplify state power and are ultimately limited compared to Bitcoin’s unconfiscatable, uncensorable nature. Debt colonialism via IMF and World Bank is laid bare, contrasted with the liberatory potential of borderless, opt-in Bitcoin economies and nascent network states. Alex and Balaji agree: the future lies in a constellation of decentralized, permissionless tech—Bitcoin, Nostr, E-cash, and more—empowering individuals anywhere to exit collapsing systems and build new, voluntary forms of community.

For more, check out Alex Gladstein’s books “Check Your Financial Privilege” and “Hidden Repression.”