Artificial intelligence and crypto are on a collision course — and according to Coinbase’s John D’Agostino, it’s exactly what the future of finance needs. He believes traditional financial systems are too outdated to support the lightning-fast world of AI-powered agents.
Why AI Agents Need Crypto to Function Efficiently
John D’Agostino, Coinbase’s head of institutional strategy, shared on CNBC’s Squawk Box that AI agents will rely on blockchain and crypto to operate effectively in modern financial markets.
He explained that AI represents infinitely scalable intelligence, while blockchain serves as an infinitely scalable source of truth. Together, they form the perfect match for real-time, trustworthy financial activity.
“You wouldn’t try to stream a movie using dial-up internet,” D’Agostino said. “Similarly, you can’t expect AI agents to run on a financial system that’s older than those modems.”
Traditional banking systems simply weren’t built for machine-to-machine transactions at massive scale. Blockchain and cryptocurrencies, however, offer instant settlement, transparency, and speed — all essential for AI-driven automation.
Faster ‘Money Rails’ for a Faster AI World
D’Agostino emphasized that if AI agents are to make financial decisions and execute trades in real time, they need faster payment infrastructure.
Legacy systems—some built more than a century ago—can’t handle the kind of speed, scale, and autonomy AI requires. Crypto networks, on the other hand, are borderless, programmable, and can move value in seconds.
“If we want to unlock the power of AI agents, they have to run on infinitely fast and scalable money rails. That’s what blockchain and crypto provide,” he explained.
Already, AI agents are being used in Web3 platforms for token launches, automated trading, decentralized applications, and other blockchain services—something traditional finance simply can’t support efficiently.
Bitcoin vs. Gold? Coinbase Exec Says the Debate Misses the Point
D’Agostino also addressed the ongoing Bitcoin vs. gold debate, saying it’s not a fair comparison.
Bitcoin offers advantages that gold can’t match:
- Programmable and digital
- Easy to transfer globally
- Can generate yield
- Scalable across borders
“If you’re concerned about inflation caused by rapid money supply growth, you need assets that can outperform that,” he added, referring to Bitcoin’s long-term potential as a hedge.
Institutional Adoption: A Slow but Strategic Process
While many crypto enthusiasts expect a massive wave of institutional investment, D’Agostino urged patience.
Institutions such as pension funds, endowments, and sovereign wealth funds don’t move in sudden “waves.” Instead, they take careful, measured steps based on research, regulation, and long-term strategy.
“Institutions are not lemmings running off a cliff,” he said. “They’re cautious and deliberate. Adoption will happen—but not overnight.”
The Federal Reserve’s recent interest rate cuts may also play a role, as trillions parked in money markets could start flowing into alternative assets like Bitcoin as rates drop. For more in-depth crypto news, analysis, and updates, check out Coinography — your go-to source for everything blockchain and cryptocurrency.”
Final Take
The message is clear: AI agents and crypto are natural allies. As AI becomes more integrated into finance, it will demand faster, more transparent, and programmable infrastructure—something traditional systems can’t provide.
Crypto and blockchain could become the backbone of the next-generation financial system, driving efficiency, speed, and trust in an increasingly automated world.
Frequently Asked Questions (FAQs)
1. Why do AI agents need crypto to work in finance?
AI agents require real-time, global, and programmable financial systems to function efficiently. Traditional finance is too slow and fragmented, while crypto offers fast, borderless transactions and transparent data.
2. Can AI use traditional banking systems effectively?
Not really. Traditional financial systems were never designed for machine-to-machine transactions at scale. Expecting AI to operate on outdated infrastructure is like trying to stream Netflix on dial-up internet.
3. How is blockchain useful for AI-powered agents?
Blockchain provides an immutable and decentralized “source of truth”. AI agents can rely on this to make faster, more accurate financial decisions without relying on centralized intermediaries.
4. What makes Bitcoin better than gold in this context?
Bitcoin is digital, programmable, and easy to transfer globally. Unlike gold, it can be moved instantly, scaled efficiently, and even generate yield through decentralized finance tools.
5. Will institutional investors adopt crypto quickly?
Institutional adoption is happening, but slowly. Large organizations take a cautious and strategic approach, focusing on compliance, regulation, and risk management before committing significant capital.
