Google has announced a new open-source payment protocol that will facilitate money transfers between AI applications. According to Fortune, this system will support not only traditional payment methods like credit and debit cards but also stablecoins. The integration of stablecoins, also known as cryptocurrencies pegged to the US dollar, is a critical development.
Google Worked on Stablecoins for AI Applications
The company partnered with Coinbase to ensure stablecoin compatibility. Coinbase was already developing its own AI and crypto payment infrastructure. In addition to the Ethereum Foundation, more than 60 organizations, including American Express, Salesforce, and Etsy, contributed to the development of this protocol. James Tromans, President of Google Cloud Web3, said, “When designing the system from scratch, we considered both existing payment infrastructures and future innovations like stablecoins.”
This development is driven by the rapidly rising AI "agent" trend. Agents are algorithms that perform specific tasks on behalf of the user. Some write code, while others shop at online stores. A common view in the tech world is that in the near future, AIs will communicate directly with each other. If this scenario materializes, an AI financial advisor will be able to find the best mortgage by talking to digital representatives from different banks; or a virtual shopping assistant will be able to interact with the AI of a clothing store to purchase the right product for the user.
Google Releases Protocol
Building on this prediction, Google released a protocol last April to allow agents to communicate with each other. The new payment protocol announced now expands this framework. This aims to ensure that financial transactions between the two AI agents are secure, transparent, and aligned with user intent.
Erik Reppel, head of engineering at Coinbase, stated that Google and its payment infrastructures have been aligned, saying, "Our goal is to enable AIs to transfer value to each other."
This move demonstrates that Google is one of the few major tech companies openly interested in stablecoins. With the advent of a more crypto-friendly government in the US, companies like Apple, Meta, and Airbnb are also reportedly working on stablecoin integration. In June, Shopify announced that it would offer stablecoin payments to its users before the end of the year.
