2021-03-15
The Legal Risks Of Cryptocurrency On State Sovereignty; A Case Study Of Uganda
Article by Ntamugabumwe Victor & Joshua Kingdom
Abstract
State sovereignty is conventionally known to mean that all states are equal under Public International Law, the decisive criterion being effective power over territory and people. Indeed, the most rudimentary definition of a state is the organization of power over territory and people within that territory. However, sovereignty today depends much on the state’s monetary independence – the state’s capacity to control the flow of money and currency in their jurisdiction. With the constant evolution of money transactions from Cash to credit and then to crypto, the state must always be ready for each revolution so that sovereignty is kept. Cryptocurrencies work outside the existing legal financial framework and as such avoid the state’s invented structure to control their monetary policies, stability to achieve sovereignty.
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