Why do AI agents need encrypted payments?

Coinbase CEO Brian Armstrong has rekindled the debate about artificial intelligence and cryptocurrencies, arguing that the rapid rise of artificial intelligence agents will enhance rather than replace digital assets. Armstrong responded to comments in a series of posts on July 27, pointing out that developers and investors have not given up on cryptocurrencies and turned to artificial intelligence, but that the two technologies should complement each other.

Armstrong said the common recommendation to "turn to artificial intelligence" reflects an outdated mindset that one innovation must replace another. However, he believes that cryptocurrencies are the financial system that artificial intelligence agents and autonomous software systems will rely on as they become increasingly popular.

"If you're in the cryptocurrency space, turn to artificial intelligence."
I have heard similar words before, but it is the wrong way of thinking. This is a zero-sum game and scarcity thinking.
Cryptocurrency is a universal technology. It is infrastructure, just like electricity or the Internet is infrastructure. It...

--Brian Armstrong (@brian_armstrong), July 26, 2026

Artificial intelligence agents require cryptocurrency infrastructure

Armstrong introduced the concept of "agent finance"(AiFi), which is the direction Coinbase is actively developing. He predicted that in the future, artificial intelligence agents will conduct financial transactions more than humans, and payment systems need to be instant, programmable and cross-border. He believes that traditional banks are designed for humans, not software. Artificial intelligence agents cannot quickly complete customer authentication procedures, open bank accounts, or wait days for international transfers. But with the help of cryptocurrency wallets and stablecoins, software can send and receive value without these restrictions. Throughout 2026, the Coinbase executive has emphasized that blockchain is the most viable payment track for artificial intelligence agents around the world.

Coinbase extends its AiFi vision

Payment protocol x402 is a core feature of Coinbase's plan and aims to transform the HTTP 402 "payment required" status code. The system allows artificial intelligence agents and applications to instantly send on-chain payments to the USDC, without the need for API keys, subscriptions, or manual login to accounts. Once the software accesses a paid service, it makes a signature payment through a stablecoin transaction and gains access to the service within seconds. According to Coinbase, the infrastructure, combined with the Base blockchain and USDC, provides a large number of emerging payment services for current artificial intelligence agents. However, the agreement has been separated from Coinbase's control, is currently managed by the Linux Foundation and supported by leading technology and payment companies such as Google, Visa, Mastercard, Stripe, AWS and Circle, demonstrating the industry's greater recognition of machine-to-machine payments.

Artificial intelligence agents face early adoption challenges

Despite Armstrong's optimism, the industry is still in the early adoption phase. The x402 reportedly processed more than 165 million transactions through thousands of artificial intelligence agents, but this number is still relatively small compared to the transaction volume of traditional financial networks. In addition, analysts pointed out that many current transactions are not actual business transactions, but tests. One of the challenges is the need for manual authorization in frequent micropayment scenarios, and some companies are addressing this issue by introducing new authorization protocols that allow AI agents to invest based on preset limits.

Competition in the artificial intelligence payment market intensifies

Coinbase is feeling the pressure of competition as more and more companies such as Visa, MasterCard, Google and professional financial technology companies build their own artificial intelligence proxy payment infrastructure. The stablecoin space is also facing new competition from other stablecoin networks, which means it is unlikely that a platform will dominate the space. Still, Armstrong believes that artificial intelligence and cryptocurrencies are complementary technologies. If agent-based artificial intelligence becomes an important part of the world economy, programmable digital currencies are likely to become the financial pillar supporting their daily operations.

Conclusion

As competition intensifies, Coinbase's prospects for artificial intelligence agents using blockchain for payments will face increasingly rigorous scrutiny. Although adoption is still in its early stages, Armstrong predicts that programmable digital currencies will become an important part of the evolving autonomous software ecosystem, making cryptocurrencies the fundamental pillar of the next generation of artificial intelligence-driven financial activities.