Governance and Geopolitics in the Age of Blockchains and Cryptocurrencies

Abstract

The advent of Cryptocurrencies (like Bitcoins) is challenging traditional financial and governance institutions. It is expected that over a period of the next few years, cryptocurrencies may be the dominant mode of value exchange. In such a scenario, there will be a paradigm shift in the relationship between governments, people and institutions. This paper deals with the impact of cryptocurrencies and Blockchain technology on governance and Geopolitics. First, the concept of cryptocurrencies (also referred to as cryptocoins in this paper) and Blockchain is explained. Then the idea of Regulated and Sovereign Backed Cryptocurrencies (RSBCs) is discussed. The effect of cryptocurrencies on governments and people is deliberated. The paper finally concludes by assessing the probable end result of the impact of Blockchains and cryptocurrencies on governance and geopolitics.