According to John D’Agostino, head of institutional strategies at Coinbase, traditional financial systems infrastructure is outdated, so cryptographic agents are required to operate effectively in financial markets.
When AI agents operate on people’s behalf, they need to manipulate “true sources.” Because it would be “a miserable if they didn’t,” D’Agostino told CNBC’s Squawk Box on Tuesday.
“Artificial intelligence is infinitely scalable intelligence and, given the blockchain, the underlying technology of crypto, these two things work very well as the source of infinitely scalable truth,” he said.
AI agents are already spread across Crypto, and are used to build Web3 applications, launch tokens, and interact autonomously with services and protocols.
AI agents need faster money
D’Agostino told CNBC that traditional financial systems are not working for large machine-to-machine transactions and asking AI agents to use them to use while asking them to work on “100-year-old financial rails.”
“If you move into this world and have the great advantage of these agents acting at infinitely fast speeds, they have to act on infinitely fast and scalable money rails.
“We don’t try to stream movies with dial-up modems. We don’t ask these AI agents to do business with financial systems older than these modems.”
The discussion between Bitcoin and Gold is meaningless
D’Agostino added that Bitcoin (BTC) performance compared to gold has also become a frequently discussed topic, but in his view, Bitcoin has a gold-free characteristic, so the two should not be compared.
Bitcoin “is programmable. It’s digital. It’s infinitely scalable in terms of movement. It’s easy to move. It doesn’t have to be kept across boundaries, it produces yields,” he said.
“If you’re one of those people who are worried about global money supply growing like 7%, 8% a year and believe it’s an excess and it’s causing inflation, you need assets to beat it.”
D’Agostino added that he is bullish in Bitcoin as well, due to the trillion dollar money market parked when US interest rates were 5% to beat inflation.
“As the rates drop, we unlock these assets. Now, rather than everything flowing into assets like Bitcoin, some will,” he said.
Related: Crypto users are cool and cool with AI dabbing in portfolio: Survey
JPMorgan CEO Jamie Dimon raised questions about more interest rate cuts, saying last week the Fed would struggle to cut interest rates unless inflation declined, but the Federal Reserve cut its fees for the first time on September 17th this year, but probably cut interest rates significantly along the way.
The agency is not “lemmings running on a cliff.”
D’Agostino also expressed doubt about the waves of the order of cryptography adoption. This is predicted to be a key driving force for the market.
According to D’Agostino, the agency is operating in the space and there are likely more institutions running along the way, but it’s unlikely that it’s a big overnight shift.
“Everyone speaks of this institutional wave in my experience dealing with pensions, donations and sovereign funds. They’re not investing in the wave,” he said.
“They don’t have Lemmings running on a giant wave cliff. They’re very careful. They’re very thoughtful.”
magazine: How do major religions in the world see Bitcoin and cryptocurrency?