Cryptocurrency Payments: A Boon for AI Agents, Says Expert

Artificial intelligence will require cryptocurrency micropayments to circumvent financial constraints, according to Bernstein analyst Gautam Chhugani, as reported by The Block.

The current global financial system is built around SWIFT, Mastercard, and Visa, which require individuals and entities to verify their identities. This poses a problem for automated AI, which lacks documentation.

Neural networks can use bank accounts and credit cards authorized by people or enterprises, but this would limit the development of a fully autonomous AI financial system and create a “federated economy,” Chhugani noted.

A drawback for the AI financial system is the inability of traditional tools to efficiently process micropayments, the expert added. Meanwhile, neural networks may need to make small transactions for data or content consumption. High costs and the need for human involvement make this process unprofitable.

Cryptocurrency could support the needs of the AI economy by facilitating small, cross-border, and instant transactions with minimal costs. Neural networks, unable to open bank accounts, could use crypto wallets.

The analyst highlighted the ongoing convergence of the crypto industry with artificial intelligence at the mining infrastructure level. Recent AI deals, including a 12-year agreement between mining company Core Scientific and CoreWeave and Coatue Management’s $150 million investment in Hut 8, have been key catalysts for this development.

Earlier, Bernstein experts predicted a shift of 20% of mining capacity to AI. Companies mining digital assets are attractive partners for creating data centers for neural networks due to their access to power sources and operational capabilities.

According to Chhugani, stablecoins offer broader prospects for the AI economy. Currently struggling to gain traction in e-commerce, AI gives stablecoins “another chance at relevance in this area.”

Integrating crypto wallets into large language models could be an excellent starting point.

“Cryptocurrencies have a real opportunity to capture the payment pool by offering greater programmability and financial autonomy to AI agents,” the expert concluded.

Back in June, Bitwise analyst Juan Leon predicted a $20 trillion boost to global GDP from the digital asset and artificial intelligence industries.