Galaxy Digital CEO Says The Gov’t Should Be Scared Of AI And Not Crypto

Galaxy Digital held its Fourth Quarter 2022 Shareholder Update Conference Call on March 28, during which CEO Mike Novogratz addressed a variety of pressing issues impacting the industry. 

From the collapse of the once might crypto exchange FTX to the U.S. banking crisis, Novogratz offered his insight into the current state of the market and the challenges facing it. With regulatory pressure mounting, the call provided an opportunity for shareholders to gain valuable insights into the company’s strategic direction.

But perhaps one of the best highlights of the call, as evidenced in the transcript, was Novogratz expressing surprise at the level of regulatory scrutiny being placed on the cryptocurrency industry, rather than on artificial intelligence (AI).

He argued that the U.S. government had its priorities “completely upside-down,” noting that AI posed a much greater threat to society than digital assets. 

Despite the challenges facing the industry, Novogratz remained optimistic about the future of cryptocurrency and its potential to transform the financial world.

Galaxy Digital CEO Mike Novogratz. Image: Reuters/Lucas Jackson/File Photo 

Galaxy Digital CEO Raises The Dangers Of Deep Fakes

In the call, Novogratz raised concerns about the potential dangers of deep fakes. With advances in AI technology making it easier than ever to create convincing fake videos and audio recordings, Novogratz warned that this could have serious implications for individuals, businesses, and society as a whole. 

The CEO said.

“When I think about AI, it shocks me that we’re talking so much about crypto regulation and nothing about AI regulation.” 

According to Novogratz, one of the most promising applications for cryptocurrency lies in the realm of identity verification for AI.

The Galaxy Digital CEO emphasized that the threat of deep fakes becoming increasingly difficult to distinguish from reality is a genuine concern, adding in jest that “pretty soon you’re going to get a fake Mike Novogratz, hopefully with hair.”

In addition, Novogratz commented on the seemingly unfair intense focus of U.S. regulators on the cryptocurrency industry following the FTX collapse.

He added:

“It is dumb to think that we should cache this industry because of Sam Bankman-Fried in his Bermuda shorts, period.”

Image: PMCA Online

Blockchain Can Quell AI Fears: Novogratz

Although expressing concerns about AI, Novogratz remains optimistic about the potential of blockchain-based applications to help address some of the challenges posed by AI.

Indeed, many experts believe that blockchain-based applications could play a key role in mitigating some of these issues. 

By providing a secure and decentralized way to store and share data, blockchain technology can help to ensure that AI algorithms are transparent, accountable, and trustworthy. This could help to address concerns around bias, privacy, and the potential misuse of AI. 

Additionally, blockchain-based smart contracts can be used to automate complex tasks, reducing the need for human intervention and minimizing the risk of errors.

With the potential to revolutionize a wide range of industries, it seems clear that blockchain technology will have an increasingly important role to play in shaping the future of AI.

Crypto total market cap currently at $1.15 trillion on the daily chart at TradingView.com

Galaxy Digital Bounces Back

Throughout the call, the Galaxy Digital big boss expressed confidence in the sustained growth of the cryptocurrency market in the remaining months of 2023. 

This positive outlook bodes well for Galaxy’s financial standing, as indicated by the company’s latest quarterly report revealing a return to profitability after sustaining a loss of $1 billion in the previous year.

-Featured image from California Business Journal