Artificial intelligence (AI) is a topic of debate. Particularly with regard to the risks associated with its use in all areas. In the United States, the federal administration has taken measures to regulate this sector, which is both attractive and dangerous. Measures which will not be without consequences for cryptos powered by AI.
New AI standards in the United States will impact crypto
On Monday, October 30, the White House released comprehensive regulations on AI. This new regulation has triggered discussions. Particularly on how the new rules could impact AI-powered cryptos. We are particularly thinking of GRT (The Graph) and AGIX (SingularityNet) cryptos.
These are in fact particular categories of cryptocurrencies whose architecture and use take into account artificial intelligence functionalities. They differ fundamentally from classic cryptos like bitcoin (BTC) or ether (ETH).
Unlike the latter, their sole objective is to take advantage of the possibilities of AI to carry out specific tasks. They can thus substantially improve the security, confidentiality and efficiency of crypto transactions. But it is not without risks.
For analysts, we must expect this that these AI-powered cryptos are suffering effects negatives related to the implementation of AI standards. But what form could the anticipated effects take?
The implications envisaged for AI cryptos
With new requirements on AI, regulatory costs associated with AI cryptos are expected to increase. Thus, blockchain projects leveraging AI will incur additional financial and time burdens to achieve compliance.
However, this does not necessarily imply an insurmountable challenge for crypto startups wishing to get started. Indeed, the new regulations provide for the obligation to share security test results and critical information with the US government.
This provision appears to apply mainly to “developers of the most powerful AI systems”. Crypto startups that have not reached such a level of sophistication may not face an immediate financial constraint. Note also that although increasing regulatory costs may pose problems, AI cryptos seem to align with the government’s objectives. In any case, they are equipped to support the Biden administration’s privacy and security ambitions.
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