Quick breakdown
- Coinbase’s John D’Agostino says AI agents need blockchain for scalable, real-time transactions.
- Traditional financial rails are too outdated to support AI-driven economies.
- He remains bullish on Bitcoin but cautions that institutional adoption will be gradual, not sudden.
AI and blockchain: a natural fit
Artificial intelligence-powered agents will require cryptocurrency to function effectively in financial markets, according to John D’Agostino, head of institutional strategy at Coinbase. Speaking on CNBC’s Squawk Box on Tuesday, he argued that the outdated infrastructure of traditional finance cannot support the speed and scalability AI agents demand.
“Artificial intelligence is infinitely scalable intelligence,”
D’Agostino said.
“If you think of blockchain as an infinitely scalable source of truth, then those two things work very well together.”
AI agents are already being deployed across the crypto sector, building Web3 applications, launching tokens, and trading autonomously, demonstrating the synergy between blockchain and automation.
Outdated rails vs. faster money
D’Agostino stressed that legacy banking systems were not designed for real-time, machine-to-machine transactions at scale. Relying on such infrastructure, he warned, would hinder AI adoption in finance.
“You wouldn’t try to stream a movie on a dial-up modem,”
he said.
“You wouldn’t ask these AI agents to transact with a financial system that’s older than those modems.”
He emphasized that blockchain enables the “infinitely fast and scalable money rails” required for AI-driven economies.
Beyond the bitcoin-gold debate
Turning to Bitcoin, D’Agostino dismissed comparisons with gold, saying the digital asset offers unique advantages.
“Bitcoin is programmable, digital, easy to move across borders, and it produces yield,”
he noted, highlighting its role as a hedge against inflation and expanding money supply.
He added that as U.S. interest rates decline, a portion of the trillions currently parked in money markets could flow into assets like Bitcoin.
Institutions will move cautiously
Despite optimism around crypto adoption, D’Agostino downplayed the notion of a sudden institutional wave. He said pensions, endowments, and sovereign wealth funds act carefully and deliberately, not in herd-like behavior.
“They’re not lemmings running over a cliff,”
he remarked.
“They’re very cautious, very thoughtful.”
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