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Former Coinbase CTO Explains How Cryptocurrencies Will Rule the AI-Driven Future
Former Chief Technology Officer of Coinbase and major investor, Balaji S. Srinivasan, recently took to X (formerly Twitter) to share his vision for the future of cryptocurrencies. According to Srinivasan, cryptocurrency will play a central role in an era dominated by generative artificial intelligence and robotics. Furthermore, Srinivasan suggested that cryptocurrencies will form the backbone of artificial intelligence.
Former CTO of Coinbase on the future of cryptocurrencies and artificial intelligence
The former Coinbase executive believes that “money after artificial intelligence becomes cryptocurrency.” Furthermore, he suggested a transformative change in the way we understand and use money in a technologically advanced world. Srinivasan argues that in a future where artificial intelligence and robotics create abundance, cryptocurrencies will be essential due to their inherent scarcity.
He said: “Cryptocurrency is what proves scarce in the era of abundant artificial intelligence.” This scarcity will be crucial in distinguishing human activities from those of gods artificial intelligence, especially when AI tools can easily mimic human actions. Furthermore, one of the key points highlighted by Srinivasan concerns the economic interactions between humans and robots.
The former Coinbase CTO explained that while you don’t need to pay for a robot you own, you will have to pay for services provided by robots owned by others. “A robot owned by another economic actor will still need money for rent,” Srinivasan noted. In this scenario, cryptocurrencies could serve as a medium of exchange to unlock and use these robots.
Srinivasan also points out that while many forms of scarcity may decline, some will persist. For example, the infrastructure needed to build and power these advanced technologies, such as AI robots and data centers, will remain limited. The former CTO of Coinbase stressed: “The supply chains to build the robots and nuclear power plants to run AI data centers will remain scarce.”
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Incorporating digital keys into artificial intelligence
Furthermore, control over these advanced machines will depend on secure digital keys. “The most important form of scarcity in the age of artificial intelligence is private keys to control robots,” Srinivasan said. The Coinbase alum added that Web3 technologies like Bitcoin and Ethereum provide the security needed to manage these keys effectively.
Furthermore, he points out that while AI brings digital abundance, it does not eliminate all forms of scarcity. “AI is digital abundance but it doesn’t make everything abundant. Cryptocurrency it is digital scarcity and complements the abundance of artificial intelligence,” he concluded.
In essence, Srinivasan’s vision presents a future in which cryptocurrencies are not just a financial instrument but a fundamental component of economic transactions in a world dominated by artificial intelligence and robotics. This perspective emphasizes the continuous evolution of money and technology. This suggests that as artificial intelligence continues to grow, the need for secure, scarce, and versatile forms of currency such as cryptocurrencies will also increase.
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