As artificial intelligence (AI) reshapes the global economy, analysts at research and brokerage firm Bernstein argue that cryptocurrency micropayments are essential to prevent financial bottlenecks in the AI-driven industry.
In a note to clients on Friday, analyst Gautam Chhugani highlighted the limitations of the current global financial system, which relies on jurisdiction-specific networks like SWIFT and companies like Mastercard and Visa for transactions. These systems require identity verification for individuals and businesses, a barrier for fully autonomous AI agents, which lack human credentials.
While AI agents could use human-authorized bank accounts or credit cards, Chhugani believes this would restrict the potential for a truly autonomous AI economy. The core issue, he argues, is the inefficiency of traditional financial systems in handling micropayments—transactions as small as fractions of a cent—that would be vital for AI agents consuming data or digital content.
To support the demands of an AI-driven economy, the financial system must evolve to enable seamless, low-cost micropayments. This is where cryptocurrency becomes essential, according to Chhugani. Crypto offers global, permissionless digital payments and near-instant settlement for microtransactions, which align with the needs of machine-to-machine payments in an AI economy. AI agents could use crypto wallets for transactions, bypassing traditional banking systems.
Chhugani also pointed to advancements in zero-knowledge proof technology, which can link AI agent identities to human or enterprise owners, and improvements in blockchain scaling via Layer 2 solutions that are making micropayments more cost-efficient.
Bitcoin vs. Stablecoins
Chhugani emphasized the convergence between AI and crypto at the Bitcoin mining infrastructure layer, where mining firms with vast power resources are becoming attractive partners for AI data centers. He cited Core Scientific’s $3.5 billion, 12-year deal with AI hyperscaler CoreWeave as an example.
However, while Bitcoin’s Lightning Network could facilitate Layer 2 payments, Chhugani sees a larger opportunity in stablecoins for the AI economy. With a circulating supply of over $176 billion and annualized settlement value exceeding $7.5 trillion, stablecoins have already proven successful in cross-border payments and crypto trading. Yet, they have struggled in e-commerce and point-of-sale payments—areas AI agents could revolutionize.
Integrating crypto wallets into large language models could enable AI agents to handle financial transactions for users, making payments as simple as natural language commands. This innovation could give stablecoins a new path to relevance in the digital economy.
“Crypto has a real opportunity to capture the AI payments pool, allowing greater programmability and financial autonomy for AI agents,” Chhugani concluded.
Chhugani maintains long positions in various cryptocurrencies.
