Crypto-Anarchy vs. State Sovereignty: Navigating the Digital Frontier

  • Natasha Lodhi
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  • Natasha Lodhi

    Student at Amity University, India

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In the ever-evolving universe of digital technologies, the battle between crypto-anarchy and state sovereignty stands as a defining storyline. With an emphasis on the applicability of this paradigm in the Indian context, this paper explores the complex dance between the decentralised ethos of crypto-anarchy and the existing mechanisms of state sovereignty. India's path in the digital age is shaped by the interaction of several factors, including the country's struggle with financial inclusion, technical improvements, and regulatory uncertainty. The emergence of crypto-anarchy, embodied by cryptocurrencies and blockchain technology, casts doubt on conventional ideas of centralised control. With platforms like Bitcoin and Ethereum providing financial liberty to people worldwide and challenging the monopoly of central banks, decentralisation grows in strength. The conflict between the need for privacy and the state's requirement for control and monitoring is at the core of this paradigm shift. India offers a fascinating setting for this conflict as a nation at the cusp of technological innovation and economic revolution. Regulatory uncertainty around cryptocurrencies has provided a fertile field for crypto-anarchy to bloom, with fans and corporations negotiating a complicated regulatory framework. The removal of the banking prohibition by the Supreme Court in 2020 has further heightened the significance of this conversation, as the government grapples with establishing a regulatory framework that balances innovation and control. One important area of contention is the possibility of financial inclusion. As a large segment of the Indian populace remains unbanked or inadequately banked, cryptocurrencies provide a substitute avenue for obtaining financial access. The way the government handles regulating or accepting this part of crypto-anarchy will be crucial in determining how financial services are developed in the nation in the future. Concerns about privacy are quite real in this digital age. As India aggressively investigates digital projects, such as the Aadhaar system, concerns over individual liberties, privacy of personal information, and the boundaries of state power are raised. The conflict between the government's interest in monitoring for security reasons and the emphasis on privacy in crypto-anarchy highlights the fine balance that needs to be found while navigating the digital realm. Blockchain technology in particular offers both potential and difficulties. India's interest in harnessing blockchain for diverse use cases, from land records administration to supply chain transparency, demonstrates a desire for efficiency and openness. However, there are concerns over the government's involvement in this quickly changing digital environment due to the conflict between the necessity for centralised authority and the desire for technical growth. India's position on cryptocurrency is becoming more and more important as it gets more integrated into the world economy. The nation's standing in the international economic system will depend on its capacity to strike a balance between the advantages of financial technology and the dangers of unbridled decentralisation.


Research Paper


International Journal of Law Management and Humanities, Volume 7, Issue 1, Page 857 - 863


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This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (, which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.


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