Cryptocurrency and Privacy: Economic Analysis of Law

Abstract

The dynamic technology junction of Cryptocurrency and Privacy pose several implications to the existing economic and legal regulations. The present work intends to take up an economic analysis of the laws relating to Cryptocurrency in the context of Privacy. The concept of money and development of fiat currency with role of banking industry leads one to understand the background of Cryptocurrency basis, therefore a segment on the historic perspective of money, development of fiat money and role of banking industry as an intermediary are added in the present work. The technology of Blockchain used in Cryptocurrency transaction transmits the existing monetary regulations across the globe thereby challenging the financial systems. The economics of Cryptocurrency has generated sufficient interest and the present work surveys such interest. The most comprehensive regulation on Privacy and Data protection having a global impact is the European Union’s General Data Protection Regulation (EUGDP), which took effect in May 2018. The EUGDP Regulations by giving much needed importance and protection to the individual’s data privacy and security have altered the functionality of the Data driven companies such as Facebook, Google and others. The work takes a brief note of issues such as data controller and data processor identification, territorial and cross-border data transfer issues, legitimate bases for processing personal data and individual’s privacy rights as some of necessary compliance under the EUGDP Regulations that interact with the blockchain technology used under Cryptocurrency transactions. The conclusion suggests the need for economic analysis of laws relating to Cryptocurrency and Privacy for their intrinsic economic value.