a16z: Why AI and Crypto Need Each Other Now More Than Ever

By: blockbeats|2026/02/05 18:00:00

Original Title: AI needs crypto — especially now

Original Source: a16z crypto
Original Translation: Chopper, Foresight News

Artificial intelligence systems are upending the internet, originally designed at a human scale. They are reducing the cost of collaboration and transactions to historic lows, and the generated speech, video, and text are becoming increasingly indistinguishable from human behavior. We have long been plagued by human-machine verification, and now, AI agents are beginning to interact and transact like humans.

The key issue is not the existence of artificial intelligence, but the lack of a native mechanism on the internet that can differentiate between humans and machines while preserving privacy and usability.

And this is where blockchain technology comes in. Cryptography helps build better AI systems, and conversely, AI can empower the ideals of cryptographic technology, with many underlying logics. Here, we summarize several reasons why AI now needs blockchain more than ever before.

Increasing the Cost of AI Impersonation

AI can forge speech, facial features, writing styles, video content, and even create a complete social persona, and can operate at scale: an intelligent entity can transform into thousands of accounts, simulate different viewpoints, consumers, or voters, with the cost of this operation continuing to decline.

Such impersonation methods are not novel: any aspiring fraudster has always been able to hire voice actors, spoof calls, send phishing texts. The real change lies in the cost: today, the threshold for carrying out large-scale fraudulent attacks has significantly decreased.

At the same time, the vast majority of online services default to "one account per real user." When this premise is not met, all subsequent systems will collapse. Detection-based responses (such as CAPTCHA) are ultimately destined to fail, as the evolution rate of AI is far faster than the detection technology specifically designed for it.

So how can blockchain play a role? Decentralized human-proof or identity verification systems allow users to easily complete single sign-on while fundamentally eliminating the possibility of one person having multiple identities. For example, scanning the iris to obtain a global ID may be simple and economical, but obtaining a second ID is nearly impossible.

By limiting the issuance of identity credentials, increasing the marginal cost to attackers, blockchain makes it difficult for AI to carry out large-scale impersonation operations.

Artificial intelligence can generate content, but encryption technology has made it extremely difficult and cost-prohibitive to forge a human's unique identity. Blockchain reshapes scarcity at the identity layer, raising the marginal cost of counterfeiting while not adding extra friction to legitimate human use.

Building a Decentralized Human Identity System

One way to prove human identity is through a digital identity marker that encompasses all information people could use to verify their identity: username, personal identification code, password, as well as third-party attestations (such as citizenship, credit qualifications), and other relevant credentials.

So, what value does encryption technology add? The answer is decentralization. Any centralized identity system rooted in the core of the internet could become a system-wide point of failure. When AI agents act on behalf of humans in transactions, communications, and collaborations, whoever controls the identity verification effectively controls participation. A centralized issuer can arbitrarily revoke user permissions, charge fees, or even engage in surveillance.

Decentralization completely flips this scenario: users, not platform gatekeepers, control their identity information, making identity markers more secure and resistant to censorship.

Unlike traditional identity systems, a decentralized human proof mechanism allows users to autonomously control and safeguard their own identity information, completing human identity verification in a privacy-preserving, absolutely neutral manner.

Creating a Portable, General-Purpose "Digital Passport" for AI Agents

AI agents do not exist solely within a single platform: an intelligent entity may appear across various chat applications, email conversations, phone calls, browsing sessions, and API interactions. However, there is currently no reliable mechanism to confirm that interactions in these different scenarios all originate from the same AI agent with consistent states, capabilities, and authorization by the "owner."

Furthermore, if an AI agent's identity is tied to just one platform or marketplace, it cannot be used across other products and critical scenarios. This leads to a fragmented user experience for AI agents, with the process of scenario-based adaptation being cumbersome and inefficient.

Through a blockchain-based identity layer, a portable, general-purpose "digital passport" can be crafted for AI agents. These identity markers can link an entity's capabilities, permissions, and payment endpoint information, verifiable in any scenario, significantly increasing the difficulty of counterfeiting AI agents. This also allows developers to create more practical AI agents, bringing a superior user experience: intelligent entities can operate across multiple ecosystems without being bound to a specific platform.

Achieving Scalable Payment Transactions

As AI agents increasingly represent humans in transactions, existing payment systems have become a significant bottleneck. Enabling scalable AI payments requires new infrastructure capable of handling microtransactions from multiple sources.

Many blockchain-based tools currently show potential in addressing this issue, such as scaling solutions, layer-two networks, AI-native financial institutions, and financial infrastructure protocols, enabling nearly fee-less transactions and more granular payment splits.

The key is that these blockchain payment infrastructures can support machine-scale transactions, including micro-payments, high-frequency interactions, and business transactions between AI agents, all of which traditional financial systems cannot handle.

· Micro-payments can be split among multiple data providers, triggering small payments to all relevant data providers in a single user interaction through automated smart contracts;

· Smart contracts support retroactive payments based on completed transactions, enforceable compensation to entities that provided information support for purchase decisions post-transaction, with the entire process being fully transparent and traceable;

· Blockchain enables complex and programmable payment splits, ensuring fair revenue distribution through code-enforced rules instead of centralized institution decisions, enabling trustless financial relationships between autonomous AI agents.

Protecting Privacy in AI Systems

Many security systems face a core paradox: the more data collected to protect users, the easier it is for AI to impersonate them.

In this context, privacy protection and security become intertwined. The challenge we face is to default human identity systems with privacy attributes, hiding sensitive information at all stages to ensure that only real humans can provide the necessary information for proving their identity.

Blockchain-based systems combined with zero-knowledge proof technology allow users to prove specific facts, such as personal identification numbers, ID numbers, eligibility criteria, without revealing underlying raw data (such as addresses on a driver's license).

As a result, applications can obtain the required identity verification guarantees, while AI systems are deprived of the original data needed for impersonation. Privacy protection is no longer an add-on feature but the primary line of defense against AI impersonation.

Conclusion

AI has significantly reduced the cost of scalable operations but has made establishing trust more challenging. Blockchain technology can reshape trust systems: increase the cost of impersonation, retain human-scale interaction patterns, decentralize identity systems, make privacy protection a default setting, and provide native economic constraints for AI agents.

If we want to build an AI agent that can function properly and not undermine trust on the internet, then blockchain is far from optional; it is a key foundational technology for constructing a native AI internet, filling a core gap in the current internet.

Original Article Link

Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:

To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:

Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:

I. Clarify the essential attributes of virtual currency, Real-World Assets tokenization, and related business activities

(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.

The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.

A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.

（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.

Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.

II. Sound Work Mechanism

(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.

The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.

(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.

III. Strengthened Risk Monitoring, Prevention, and Disposal

(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.

(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.

(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.

(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.

（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.

（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.

（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.

（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.

IV. Strict Supervision of Domestic Entities Engaging in Overseas Business Activities

（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.

（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.

(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.

V. Strengthen Organizational Implementation

(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.

(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.

VI. Legal Responsibility

(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.

(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.

This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.

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