John D’Agostino, head of institutional strategy at Coinbase, believes that artificial intelligence (AI) and cryptocurrency are destined to work hand-in-hand when it comes to the future of finance. Speaking with CNBC’s Squawk Box, he argued that the outdated infrastructure of traditional banking systems simply cannot keep up with the speed and scalability that AI-powered agents require.
According to D’Agostino, expecting AI to run on current financial rails is like trying to stream a movie over a dial-up internet connection. “AI is scalable intelligence. Blockchain, the foundation of crypto, is a scalable source of truth. Together, they align perfectly,” he said.
Why Crypto Fits AI
AI-driven agents are already being used within the digital asset space to build Web3 applications, launch tokens, and even trade autonomously. D’Agostino highlighted that for these agents to perform real-time, machine-to-machine transactions at scale, they need faster and more reliable systems than the century-old financial networks we have today.
“If AI agents are going to act on behalf of people, they must operate on reliable, verifiable sources of information. Blockchain provides that,” he explained. “And if agents are moving at machine speed, they need equally fast money rails—crypto delivers that.”
Bitcoin vs. Gold: An Outdated Debate
D’Agostino also touched on the frequent comparisons between Bitcoin (BTC) and gold. He argued that the debate misses the point since Bitcoin has qualities that gold lacks.
“Bitcoin is programmable, digital, easy to transfer globally, and even generates yield,” he noted. For those concerned about inflation driven by expanding money supply, he suggested Bitcoin provides an asset that has the potential to outperform.
With trillions of dollars currently parked in money markets due to higher U.S. interest rates, D’Agostino believes some of that capital could flow into Bitcoin as rates decline.
Institutional Adoption: Slow but Steady
On the question of institutional participation, D’Agostino pushed back against the idea of a sudden tidal wave of investment. While institutions like pensions, sovereign wealth funds, and endowments are entering the space, he said they move cautiously.
“They don’t behave like lemmings running off a cliff,” he explained. “They take deliberate, thoughtful steps rather than rushing in all at once.”
Key Takeaway
D’Agostino’s remarks underline a broader view emerging in the industry: AI’s future in financial markets may depend heavily on crypto and blockchain. With traditional systems too slow to support real-time digital interactions, blockchain-based networks could become the backbone of next-generation finance.
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