Understanding the Impact of AI in Cryptocurrency Regulations

According to reports, Mike Novogratz, CEO of Galaxy Digital, told investors that he was shocked by the level of attention regulators have paid to cryptocurrencies rather than artificial intelligence (AI), and believed that AI technology would trigger a “deep fake” identity crisis. “When I think of AI, we talked about so much encryption regulation, but we didn’t mention it at all. I think the government has completely reversed it. In many ways, one of the best use cases for encryption technology will be around AI identification. However, he believes that blockchain based applications will play a” significant role “in solving some of the issues raised by AI.”.

Galaxy Digital CEO: The government should focus on artificial intelligence rather than encryption

Introduction

The cryptocurrency market has been a buzzword in the financial world for the past several years. Its unprecedented growth has raised many questions and concerns among governments and financial regulators around the world. However, Mike Novogratz, CEO of Galaxy Digital, a decentralized merchant bank, believes that the regulators are overlooking the true threat that Artificial Intelligence (AI) poses. According to him, while cryptocurrencies are receiving a lot of attention from regulators, AI technology will trigger a “deep fake” identity crisis, for which blockchain technology is being seen as a solution.

The Attention Paid to Cryptocurrencies vs. AI

The government is currently focusing on regulating cryptocurrencies to ensure transparency and accountability in the financial system. However, while this is important, AI technology is advancing at an unprecedented pace and has the potential to pose significant threats to individuals and organizations. Mike Novogratz believes that the focus of regulators should shift from cryptocurrencies to AI technology since it has the potential to create a “deep fake” identity crisis.

The “Deep Fake” Identity Crisis

Deepfakes refer to machine learning technology that creates videos or images that appear to be real but are composed of fabrications. Deepfake videos can manipulate political figures, celebrities, and the general public by creating an impression that they said or did something they never did. Additionally, AI technology can be used to impersonate identities, create convincing phishing scams, and enable identity theft.

The Role of Encryption Technology in AI Identification

Mike Novogratz believes that encryption technology will play a significant role in AI identification. He suggests that AI identification systems must be built on a secure and tamper-proof infrastructure. In the coming years, AI identification is expected to become invaluable technology in operations such as financial services, border control, employment, and government-issued documents.

The Role of Blockchain Technology in Solving AI Issues

Although AI identification systems are being developed, for organizations and individuals to trust them, they must be tamper-proof and secure. Blockchain technology, with its decentralized and immutable infrastructure, offers the perfect solution to the AI identification crisis by enabling secure data-sharing at scale. Blockchain allows for peer-to-peer data exchange, providing a secure platform for organizations to verify and validate data easily.

Conclusion

AI technology is progressing at an unprecedented speed, and its potential impact cannot be ignored. It has the capacity to bring a “deep fake” identity crisis, which may pose significant risks to individuals and organizations. While the government is currently focusing on regulating cryptocurrencies, a significant shift in attention is needed to address the AI identification crisis. Thus, blockchain technology offers a solution to address the issues raised by AI while improving the security and authenticity of the system.

FAQs

Q. What are deepfakes?

A. Deepfakes are videos or images created using machine learning technology that appear to be real but are fabrications that can mislead individuals and organizations.

Q. How can Blockchain technology help solve the AI identity crisis?

A. Blockchain technology offers secure and tamper-proof infrastructure, enabling peer-to-peer data exchange, and providing a secure platform for organizations to verify and validate data in the AI system.

Q. Why has the focus shifted from Cryptocurrencies to AI identifying technology?

A. Mike Novogratz, CEO of Galaxy Digital, believes that the impact of AI has been overlooked, and the potential risks of AI technology are very high with a “deep fake” identity crisis that may pose a threat to individuals and organizations.