Balaji Srinivasan, former Coinbase CTO and The Network State author, says cryptocurrency was built to create a “code-based order” as traditional institutions falter, framing blockchain as the backbone of a new global system.
Crypto as Global Lifeboat? Balaji Srinivasan Makes the Case on X
The Silicon Valley entrepreneur and investor laid out his case in a post on X this weekend after responding to a user who questioned crypto’s real-world value beyond speculation. Rather than sidestep the criticism, The Network State author reposted it and delivered a sweeping answer that recasts digital assets as infrastructure for a borderless economic system.
“The purpose of crypto is to build a code-based order, because the rules-based order is unfortunately collapsing,” Srinivasan wrote. He argued that blockchain networks can replicate and even improve upon protections traditionally handled by international law, including property rights, contractual enforcement and identity verification.
In his words, the code-based order “guarantees property rights, smart contracts, rule-of-code, privacy, secure voting, and user accounts across borders,” adding that even “in the face of debanking and denaturalization,” individuals retain “your onchain currency and onchain identity.”
Srinivasan acknowledged that crypto networks are fueled in part by financial speculation, likening them to state lotteries. “Lotteries fund states. Lotteries also fund networks,” he wrote, drawing a parallel between public finance and blockchain ecosystems.
The broader question, he suggested, is whether society receives something superior in return. As nationalism and socialism expand in parts of the world, he said, blockchain preserves open participation in global markets, enabling individuals to transact without regard to “race, religion, accent, ancestry, or other likely irrelevant attributes.”
His argument stretches beyond money. Responding to a critic who noted that physical property and real-world assets still depend on legal systems and courts, Srinivasan pointed to emerging technologies such as smart locks and cryptographic access controls.
“With smart locks, we can extend cryptographic property rights to anything secured by a door. With cryptographic keys for robots and drones, we can extend it further still,” he replied, referencing a July 2025 essay he authored titled “All Property Becomes Cryptography.”
In that article, Srinivasan laid out a layered thesis. He began with digital assets, noting that “trillions of dollars worth of digital gold is secured onchain” and that ownership of bitcoin is globally verifiable. From there, he argued that legal clarity around stablecoins paves the way for tokenized stocks, bonds and other financial instruments.
The next leap, he wrote, involves physical infrastructure: homes unlocked via token verification, vehicles started by digital signatures, and capital equipment secured through blockchain-based control systems. “All property becomes cryptography,” he declared, asserting that public blockchains offer a more resilient backend than traditional institutions that are frequently breached.
The vision is expansive and unapologetically ambitious. Srinivasan contends that as Western institutions strain and Eastern states consolidate power, blockchain offers a third path — a neutral, internet-native framework for property and identity.
“That’s what cryptocurrency was built for,” he wrote. “If and when your state fails, or turns against you, the Internet will be there for you.” Whether that thesis becomes mainstream policy or remains a high-conviction bet from crypto’s intellectual wing, it adds a fresh layer to the ongoing debate over what digital assets are actually for.
FAQ ❓
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What did Balaji Srinivasan say about crypto?
He said crypto’s purpose is to build a “code-based order” that protects property and identity through blockchain technology. -
What is a code-based order?
It refers to a system where rules, contracts and ownership are enforced by software and cryptography rather than courts and governments. -
How does this apply to physical property?
Srinivasan argues that smart locks and cryptographic keys could extend blockchain-based control to homes, vehicles and equipment. -
Why is this debate significant now?
It comes as critics question crypto’s real-world utility beyond speculation, prompting renewed discussion about blockchain’s long-term role.