Crypto as AI currency: The promise and perils of a decentralised future

Naval Ravikant, the philosopher-entrepreneur known for his astute insights into technology and society, recently asserted that "crypto is the currency of AI." This has gained traction among a growing school of thought that envisions a future where tokens validate the authenticity of all assets—monetary and non-monetary—on a global scale. 

On the surface, this idea is simple. It promises a world where blockchain technology, underpinned by cryptocurrencies, serves as a universal ledger, providing an immutable record of transactions and ownership. In a landscape increasingly dominated by artificial intelligence, this model purports to offer a mechanism for ensuring trust, transparency, and security. 

Yet, as appealing as this vision might be to the crypto evangelists, it raises significant concerns among policymakers and financial regulators.

The concept of using tokens to authenticate every asset is not without its merits. In theory, a decentralised ledger maintained using blockchain could indeed offer a robust system for tracking the provenance of assets, whether they be financial instruments, intellectual property, or even physical goods. While the idea of using tokens to authenticate every asset through a decentralised ledger is theoretically promising, however, its practical implementation faces several significant challenges.