Galaxy Digital CEO Mike Novogratz has suggested that regulators should prioritize regulating artificial intelligence (AI) instead of cryptocurrency. According to Novogratz, the technology that will trigger the “deep fake” identity crisis is AI, not crypto, and therefore should be a greater concern for regulators.
Novogratz highlighted that blockchain and cryptocurrency could have a significant role in identity verification around AI, especially as deep fake technology continues to improve, which could create issues with verifying people’s identities. The CEO argued that focusing on the regulation of cryptocurrency is a misdirection of resources, and the industry should not be penalized due to bad actors.
Novogratz’s comments come amid a wave of regulatory scrutiny against the cryptocurrency industry in various countries. In recent months, governments worldwide have taken steps to regulate or restrict cryptocurrency trading and mining activities. Some countries have banned crypto mining altogether, citing concerns over its energy consumption and environmental impact.
However, Novogratz believes that the attention should be on regulating AI, given the potential risks associated with the technology. He suggested that regulators should take a more measured approach to cryptocurrency regulation, focusing on bad actors and protecting consumers without stymieing innovation.
While AI has made tremendous progress in recent years, the technology still poses significant challenges for regulators. Deep fake technology, which can generate realistic images and videos of individuals that do not exist, has raised concerns about the potential misuse of AI. As such, it is essential to ensure that proper safeguards and regulations are in place to mitigate the risks of AI misuse.
In conclusion, Novogratz believes that AI poses a more significant threat than crypto and that regulators should prioritize the regulation of the former.