Integrating Human Rights into Cryptocurrency: A Core Principle

Perspective by: Shady El Damaty, co-founder of Human.Tech

Beyond the excitement of accelerationist and tech enthusiast groups, a subtle crisis of trust is emerging in innovative technologies.

Cryptocurrency and decentralized identity solutions continue to hold immense promise to empower individuals and distribute authority — yet numerous developers and users are raising concerns. Their disenchantment arises from tangible issues: surveillance excess, centralization masked as progress, and tools that serve authority rather than individuals.

This dialogue is no longer hypothetical. From deepfake frauds and AI impersonation to state-sponsored biometric ID initiatives and the EU AI Act, digital rights are being shaped in real-time, frequently without public endorsement.

In this environment, the issue isn’t whether to incorporate human rights into crypto systems, but how quickly we must do so.

The core of the dilemma isn’t the technology itself, but the values instilled in its design. The future validity of crypto hinges on the incorporation of human rights into its framework.

Tenets such as self-custodianship, universal personhood, and privacy-by-default should not be seen as optional components — they must be foundational for any system that claims to promote human liberty.

Reconceptualizing self-custodianship as human-focused

If we neglect to integrate ethical values into protocols now, we risk reinstating the same power imbalances that Web3 was created to challenge.

Self-custodianship has long been a fundamental aspect of crypto. The failures of centralized exchanges — exemplified by the collapse of FTX — and the usability hurdles of current custody tools have revealed a significant gap: Most self-custody solutions aren’t designed for regular users; they’re tailored for power users.

To be sustainable at scale, the upcoming generation of custody must maintain user control without compromising accessibility. Lost keys, complex interfaces, and fragile backups are unacceptable if true user empowerment is the objective. The future of custody will rely on a design that harmonizes safety, ease of use, and sovereignty.

Universal personhood as a digital imperative

As bots become increasingly convincing and AI-driven interactions proliferate online, demonstrating that you’re human is becoming more intricate and vital. We need frameworks to validate humanity without compromising privacy or individual agency.

Government-issued biometric IDs and corporate credentialing systems present serious dangers. Instead, decentralized and censorship-resistant systems of personhood must allow individuals to affirm their humanity without relinquishing it. This serves as the basis for trust, integrity, and inclusion in the digital realm.

Privacy should be the standard, not the supplement

Surveillance, data breaches, and behavior monitoring are the remnants of Web2. Web3 has the chance, and the responsibility, to break that trend. Privacy is frequently regarded as an add-on rather than an inherent right.

Related: The genuine revolution in crypto is about humanity, not technology

Privacy-by-default means creating systems that minimize data collection, incorporate encryption by design, and uphold autonomy in storing and utilizing data. Transparency should never be the baseline. Every system should commence from the premise that user protection is a fundamental feature, not an optional toggle.

Address risk without relinquishing responsibility

Some detractors argue that embedding values into systems can backfire, and that ethical frameworks might be manipulated or politicized. That’s a valid concern. Nonetheless, it’s still not a justification for inaction. Transparent system design, open governance, and pluralistic alignment mechanisms can alleviate this risk and ensure protocols remain accountable to users, not merely founders or investors.

Web3 offers tools that, when developed responsibly, can decentralize authority, empower communities, and deter misuse. This potential will only be realized if creators intentionally incorporate rights into the protocol layer rather than attempting to retroactively instill ethics after deployment.

We are at a pivotal moment. Human rights can no longer be viewed as external safety rails. They must become internal guiding principles for digital infrastructure. That’s not merely a philosophical luxury; it’s essential for design.

The opportunity is available, but closing. If we desire a digital future that benefits humanity, the moment to integrate our values into code is now.

Perspective by: Shady El Damaty, co-founder of Human.Tech.

This article serves general informational purposes and is not intended to be nor should it be interpreted as legal or investment advice. The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily align with or represent the views and opinions of Cointelegraph.