a16z Advocates for Privacy-First Digital Identity Solutions to Enhance U.S. Security

2025-11-12 21:02

Andreessen Horowitz (a16z) has called on the U.S. Treasury to adopt decentralized digital identity solutions to bolster national security and safeguard civil liberties. The venture capital firm suggests that the Financial Crimes Enforcement Network (FinCEN) should leverage its exceptive relief authority to enable financial institutions to implement technologies like Zero-Knowledge Proofs (ZKP) and multi-party computation (MPC). a16z emphasizes that these privacy-focused technologies are crucial for the regulated mainstream adoption of digital assets and web3 protocols. The report also notes the expanding $3.4 billion digital identity market, with Worldcoin (WLD) as a leading project.

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