Data Sovereignty is concerned with any jurisdictions' laws and regulations covering any data collection or processing done within that jurisdiction, governing the data. Data Sovereignty differs from Data Residency in that Data Residency reflects a business decision on where to store and process data, often based on Data Sovereignty Laws and Regulations applicable to a particular jurisdiction.
Much of the current interest in Data Sovereignty by jurisdictions (i.e., Countries) around the world is traceable to the revelations made public of U.S. activities of surveillance and collecting data globally on people (i.e., internally and externally to the U.S.) 1). The simplest way to look at Data Sovereignty is to consider national Privacy Considerations and preventing data stored in a foreign country from subpoenas by the host country’s government.
A globally accepted U.S. CBDC needs to take the Data Sovereignty issues seriously if there is any hope of “Preserving the dominant international role of the U.S. dollar (
A theoretical example of how complicated a globally accepted U.S. CBDC would be:
A real-world example of Data Sovereignty issues is Microsoft’s Data Privacy Case vs. the DoJ2):
The adoption of U.S. CBDC could break traditional geopolitical barriers more than ever before, especially depending on the Currency Model selected. Depending on the perception of privacy protection of the CBDC, many countries may amend existing laws and regulations or greatly restrict the use of a U.S. CBDC.
The U.S. CBDC needs to be completely honest and open about where data: