GM 👋

It’s a brave new world out there, so let’s talk self-custody and sovereignty for a few minutes before the weekend fog sets in.

Let’s jump in 🤾‍♂️

Self-Sovereignty 🛀

Self-sovereignty is the concept of individuals having complete control over their own data, assets, and identity, without relying on third-party intermediaries or central authorities. This concept is becoming increasingly relevant in today's digital age, where data breaches, bank failure, cyber attacks, and privacy violations are becoming more common.

Here in the US where business and government infrastructure functions well enough, the notion of being holistically self-sovereign sounds inconvenient and complicated. Make no mistake, it is.

But is it worth it?

That’s the 100 year question for the developed world where financial systems, economies, central banks, and central governments have experienced extended eras of stability.

In other parts of the world where government has failed, it would be nearly impossible to build wealth otherwise. Here are some examples of this trend manifesting:

Latin America 💃

• In Argentina, individuals are using cryptocurrencies like Bitcoin as a store of value, given the country's high inflation rates and unstable currency. This has allowed individuals to maintain control over their own financial assets, rather than relying on traditional banking institutions.
  

• In Brazil, decentralized social media platforms like Minds and Steemit are gaining popularity, as they allow individuals to maintain control over their own personal data and protect their privacy online.
  

• In Mexico, the government is exploring the use of blockchain technology to help address corruption in the public sector, as it allows for greater transparency and accountability in government transactions.

Africa 🌍

• In Kenya, the M-Pesa mobile payments system has allowed individuals to bypass traditional banking institutions and gain greater financial self-custody. M-Pesa allows users to send and receive money via their mobile phones, without the need for a bank account.
  

• In Nigeria, the #EndSARS protests in 2020 highlighted the importance of self-sovereignty and privacy in the digital age, as protestors used encrypted messaging apps like Signal and Telegram to organize and communicate without fear of government surveillance.
  

• In Ghana, the Bitland project is using blockchain technology to help individuals secure property rights and gain greater control over their own land titles. This has the potential to help address issues related to land disputes and corruption in the country.

So what?

These are just a few examples of how self-sovereignty is being embraced in Latin America and Africa. By empowering individuals to take control of their own data and financial assets, self-sovereignty has the potential to transform these regions and create a more decentralized and equitable future.

Having worked with multi-generational wealth in Latin America I noticed that wealth needs to survive governments, economic volatility and decision making. For many Latin American investors self-sovereignty is almost an implicit need— negating country risk and political risk is always top of mind.

It is easy to see how these solutions could apply to the developed world if things were to become… more… chaotic…

As far as investing in this theme, we’re building a thematic list of companies with exposure to this concept to track.

For now, the best way to invest in this theme would be via cryptocurrencies, de-fi protocols, and/or public companies with exposure to this concept directly or indirectly if said company has exposure to blockchain.

Bon weekend!