Alongside the rise of blockchain technology, the rise of generative artificial intelligence (GenAI) has been another top innovation trend in recent years. From time to time, there is a confluence of these two trends.
Admittedly, it’s unclear what crypto-related AI progress may mean for the price of cryptocurrencies like those found on Binance. Right now, it’s not AI, but macro factors like tariffs and interest rates that are having a greater impact on prices.
Still, AI progress could help boost crypto usage, which may bode well for prices long-term. A clear example of this is with one of the latest AI-related crypto developments: news of Tether’s plans to integrate crypto-based payments into its upcoming AI platform.
Tether: Teasing Crypto Features Ahead of AI Platform Launch
In a social media post published on X.com on May 5, Tether CEO Paolo Adroino provided the public with the latest regarding the stablecoin giant’s plans to enter the fast-growing AI space.
Based on the post, Tether and Adroino remain vague about when exactly Tether AI will launch. Adroino’s post simply says “coming soon” with regards to the release date. Yet while the launch may be pending, we now have a better understanding of what this platform could offer.
In a nutshell, Tether AI promises “personal infinite intelligence.” Tether AI will facilitate direct execution payments on peer-to-peer networks without any role for intermediaries. For developers, Tether AI opens up new avenues to build adaptive AI systems that run on any device, support real-time crypto payments and prioritize user sovereignty. By utilizing an open-source AI runtime, this platform is “capable to adapt and evolve on any hardware and device.” As it pertains to crypto, Tether AI, via an open-source wallet development kit (WDK), will be enabled for USDT and Bitcoin payments.
This announcement is far from being game-changing news with regards to crypto prices. However, considering how far Tether wants to expand into the world of AI, this announcement may mark the start of further integration of blockchain and AI technology. Again, over time, this confluence could finally start having an impact on the crypto economy.
What Tether AI Means for Bitcoin, Altcoins and Stablecoins Moving Forward
Past reports of the company’s AI roadmap show that Tether wants to get into all areas of AI, including some areas that for now sound more like science fiction. However, just by being able to offer crypto-based solutions like enhanced self-custody, this platform could have a major positive impact on cryptocurrencies.
In the years ahead, if this platform lives up to its promise of building a more open and resilient monetary system, this platform could attract a significant user base, made up of both those currently holding crypto, as well as those who have yet to put some or all of their personal capital on-chain.
This in turn could lead to increased usage of Bitcoin as a store of value and medium of exchange, which may have a positive impact on BTC prices. Per another past Ardoino social media post, Tether AI’s WDK will eventually be enabled to support other blockchains supported by Tether’s stablecoins.
In other words, the Ethereum blockchain, and in turn its altcoin/native token, Ether, could benefit from increased use. It goes without saying that, if this platform becomes very popular, it will likely lead to increased use of Tether stablecoins like USDT. While this won’t impact their value, it may increase their liquidity/ease of use in everyday transactions.
The Takeaway
Given the lack of detail regarding release date, it’s unclear when Tether AI will start having a positive impact on the Bitcoin and altcoin usage and prices. The same goes for its potential impact on stablecoin usage as well.
Even so, this announcement underscores how increased institutional investment is not the sole catalyst out there long-term for Bitcoin and other cryptocurrencies. Technological innovations such as AI integration stand to increase the functionality and ease of use of cryptocurrencies.
As this happens, a greater share of financial transactions will be conducted on blockchain- based platforms. These platforms make usage of cryptos a necessity, for staking and transaction fee purposes. With increased need/demand for Bitcoin and altcoins, these digital assets could rise in value over time.
Hence, it may prove worthwhile to keep an eye on the Tether AI situation, ahead of further news and announcements.
