Abstract
This article explores the evolution of crypto-anarchy, tracing its origins from the cypherpunk movement to the rise of decentralized finance (DeFi) and its transformative effects on legal and economic systems. Central to crypto-anarchy is the belief in individual empowerment through privacy, financial autonomy, and decentralization, which allows users to bypass traditional intermediaries like banks. While these technologies offer increased freedom and financial inclusion, they also introduce significant risks such as money laundering, tax evasion, and the facilitation of illegal activities, posing challenges to current regulatory frameworks. The article examines the socio-economic implications of decentralization, including both the democratization of finance and the widening wealth disparities, as early adopters often gain disproportionate rewards. Environmental concerns related to energy-intensive cryptocurrencies like Bitcoin and ethical dilemmas surrounding privacy versus accountability are also addressed. The article concludes by examining the potential for AI, blockchain, and decentralized governance models to further disrupt traditional financial and governance structures, while emphasizing the need for robust regulatory frameworks to mitigate risks and ensure long-term sustainability. It envisions a future where decentralized technologies contribute to a more transparent, equitable, and participatory global economy.
Date Received
November 12, 2024
Date Revised
November 26, 2024
Date Accepted
December 29, 2024
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Recommended Citation
Zhuk, Alesia
(2024)
"From Cypherpunks to Decentralized Finance: How Crypto-Anarchy is Redefining Legal and Economic Systems,"
Markets, Globalization & Development Review:
Vol. 9:
No.
3, Article 2.
DOI: 10.23860/MGDR-2024-09-03-02
Available at:
https://digitalcommons.uri.edu/mgdr/vol9/iss3/2
Included in
Computer Law Commons, Finance and Financial Management Commons, International Business Commons, Law and Society Commons, Management Information Systems Commons, Politics and Social Change Commons, Public Affairs, Public Policy and Public Administration Commons, Science and Technology Law Commons, Technology and Innovation Commons
Author Bio
Alesia Zhuk is a Ph.D. candidate at Universitat Pompeu Fabra, Barcelona, Spain. She is focusing her doctoral research on Kleros and online dispute resolution. Her multidisciplinary research explores the intersection of emerging technologies—such as AI, blockchain, and virtual environments—and legal frameworks, with the aim of understanding their implications and applications in the legal domain.