Coinbase CEO Brian Armstrong announced a dramatic acceleration in the company’s artificial intelligence adoption, revealing plans to have more than half of the cryptocurrency exchange’s code written by AI within the next month—a move that industry experts say positions Coinbase ahead of even Microsoft and Google in machine-generated software development.
In a post on X (formerly Twitter), Armstrong said roughly 40% of daily code is now written by AI tools, up from just 18% in early April, and set an October target to exceed 50%. “All AI-generated code is reviewed and understood,” Armstrong wrote, adding, “But we should be using it responsibly as much as we possibly can.” He cautioned that not all areas of the business use the technology and said its adoption is carefully monitored.
But behind the bold ambition, Armstrong also implemented a controversial policy: engineers at Coinbase were given one week to adopt new AI coding tools—prompting a handful of staff terminations among those unable to justify their reluctance. “I hope you’re all as excited about these tools as I am,” Armstrong told engineering staff in a Slack message seen by Cryptocurrency NewsCast. “If not, I’d like to meet with you to understand why.” At the resulting meeting, some employees with credible reasons for not adopting the tools were excused, but others were dismissed, according to Armstrong’s public remarks.
Security Concerns and Industry Pushback
The aggressive AI shift arrives just months after a major security breach at Coinbase—described by security experts as one of the most costly in crypto history—which compromised data from nearly 70,000 customers and cost the company hundreds of millions of dollars. Industry voices have warned that hasty AI adoption could further erode platform security, especially given the recent breach.
Larry Lyu, founder of Dango decentralized exchange, called the policy “a giant red flag for any security-sensitive business.” Adam Cochran, a partner at Cinneamhain Ventures, echoed the concerns on X: “I’m not sure ‘40% of our code is written by AI’ is what I want to hear from a place that stores financial assets.”
Despite the criticism, Coinbase is doubling down on engineering hires, with close to half of its roughly 350 open roles in engineering and product development. The company insists that every line of AI-generated code undergoes human review and that the technology is not universally deployed across its business.
What’s Next for AI in Crypto?
As Coinbase leads the charge in AI integration, the broader cryptocurrency industry is watching closely to assess the impact on security, innovation, and regulatory scrutiny. While AI promises efficiency and speed, its rapid deployment—coupled with incidents like May’s data breach—has raised questions about balance, oversight, and trust in an industry already under global regulatory pressure.
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