Coinbase CEO Reveals First AI-Powered Cryptocurrency Transaction

Cryptocurrency trading On August 30, Coinbase’s CEO Brian Armstrong said in a post on X that the company had witnessed its first cryptocurrency transaction involving artificial intelligence (AI) bots.

He clarified that one large language model (LLM) purchased AI tokens from another AI bot using cryptocurrency tokens. Bots are designed to do specific jobs, like executing cryptocurrency transactions in this example.

AI bots can possess cryptocurrency wallets but not bank accounts. These artificial intelligence bots can now transact with customers, merchants, and other AIs. Armstrong pointed out:

“Those transactions are free, worldwide, and instantaneous.”

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Armstrong claims that the reason AI agents are ineffective at the moment is that they are unable to complete tasks, even when given them and left alone for several hours or days. He declared:

“An AI agent today cannot complete a task and return in a few days or hours with any useful work completed.”

Armstrong clarified that this is a result of the limitations of the technology. Even while certain businesses, such as Devin AI, are working on it, the objective is still far off.

Additionally, he thinks AI agents are useless since they are unable to complete transactions to obtain the necessary resources. An AI agent won’t be able to book you a ticket, for example, if you ask it to since it doesn’t accept credit cards or other forms of payment. Additionally, this stops them from using adverts to promote their posts on X or other social media networks.

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Armstrong thinks that having AI bots capable of conducting business will transform everything and be advantageous to all parties. This is especially true for companies that may allow AI checkout for their shopping carts through the usage of AI agents.

In an attempt to grant AIs the ability to do transactions, Coinbase is not acting alone. For example, blockchain development company Skyfire announced earlier this month the debut of a payment platform that allows artificial intelligence to make and spend money.

AI bot onboarding began in June at Web3 infrastructure provider Biconomy. As a result, users can assign trading tasks to AI agents, who can carry out on-chain transactions.

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