Franklin Templeton identified blockchain technology as the next major protagonist in the artificial intelligence era, according to a CoinDesk report published on local time the 22nd. Sandy Kaul, head of Franklin Templeton, stated this prediction as the industry transitions from generative AI to agentic AI systems that autonomously schedule tasks, purchase goods, and execute stock trades without human intervention. The core challenge emerges from micropayment infrastructure: when AI agents transact with each other for services costing fractions of a cent, traditional credit card and banking systems impose fees exceeding the transaction values themselves, rendering such exchanges economically unfeasible.
AI Evolution Creates Micropayment Infrastructure Challenge
The AI landscape has primarily featured generative AI systems that produce text or images based on human commands. The industry now faces a rapid shift toward agentic AI, which operates autonomously without human assistance to schedule appointments, purchase items, and execute stock transactions. This evolution introduces a fundamental payment problem: when one AI purchases information from another AI, the transaction value may amount to less than one cent. Existing credit card and banking infrastructure cannot support such micropayments because processing fees exceed the actual transaction amounts, making the exchanges economically impossible.
Blockchain Enables Near-Zero Cost Micropayments for AI Agents
Experts identified blockchain and cryptocurrency as the solution to this micropayment challenge. Blockchain technology facilitates instant transfers of ultra-small amounts without intermediary banks, charging minimal fees that remain viable even for sub-cent transactions. This capability positions blockchain as essential infrastructure for an economy where AI agents conduct millions of autonomous microtransactions daily.
Circle CEO Compares Blockchain Cost Reduction to AI Knowledge Labor Impact
Jeremy Allaire, CEO of Circle Internet Group (NYSE: CRCL), stated that "just as AI is dropping the cost of knowledge labor to zero, blockchain and programmable digital currency are also lowering the cost of transferring money and settlement to near zero." This parallel highlights how blockchain technology addresses the transactional friction that would otherwise prevent AI agents from operating in an autonomous economy.
Investment Focus May Shift Beyond Semiconductors to Blockchain Infrastructure
Investment in AI has concentrated on semiconductors and data centers. Analysis suggests that blockchain and cryptocurrency may emerge as new investment targets, serving as the direct payment infrastructure enabling AI agents to function in an autonomous economy. This represents a potential expansion of AI-related investment opportunities beyond hardware components to the transactional layer supporting AI agent interactions.
FAQ
What did Franklin Templeton identify as the next major technology in the AI era?
Franklin Templeton's Sandy Kaul identified blockchain technology as the next major protagonist in the AI era, according to a CoinDesk report published on local time the 22nd.
Why is blockchain necessary for AI agent transactions?
Blockchain enables instant transfers of ultra-small amounts without intermediary banks at minimal fees, solving the micropayment problem where traditional credit card and banking fees exceed sub-cent transaction values that AI agents need to exchange.
How did Circle's CEO compare blockchain to AI's impact?
Circle CEO Jeremy Allaire stated that blockchain and programmable digital currency lower the cost of transferring money and settlement to near zero, paralleling how AI drops the cost of knowledge labor to zero.
