Headline: Consensus Hong Kong: Crypto as the “currency for AI,” fresh volatility for bitcoin, and regulators moving fast At CoinDesk’s Consensus Hong Kong this week, conversations ranged from a new payments niche for machines to renewed anxiety about bitcoin’s slide and accelerating regulatory moves — especially out of Hong Kong. Machine economy: crypto as the payments rail for AI Hong Kong Financial Secretary Paul Chan Mo-po argued that as AI agents gain autonomy, they could begin to operate in a nascent “machine economy” — holding and transferring digital assets and transacting onchain. “As AI agents become capable of making and executing decisions independently, we may begin to see the early forms of what some call the machine economy,” he said. Binance CEO Richard Teng amplified that theme, telling attendees that agentic AI — booking flights, hotels and other services on behalf of users — will likely pay via crypto and stablecoins. “Crypto is the currency for AI,” Teng said, predicting onchain payments will power many automated purchases. Market mood: bitcoin down, eyes on $50K Market participants also wrestled with recent volatility. Bitcoin has tumbled nearly $30,000 in a month, with the token trading around $67,284.66 during the event, and some attendees warned further declines are possible before a bottom forms. Several traders pointed to $50,000 as a key support level to watch. Prediction markets and liquidity concerns Sentiment is shifting around betting and prediction markets, too. Traders at the conference said they worry these platforms could draw liquidity away from “productive sectors” of the economy, potentially creating a “negative wealth effect” if capital is reallocated toward speculative bets rather than investment and growth. Regulatory focus: Hong Kong advances, U.S. influence looms Regulatory developments were a major theme. While Hong Kong’s policy announcements dominated headlines, industry participants said they’re closely watching progress in the U.S. on crypto market-structure legislation. One attendee noted the U.S. market’s size gives it outsized influence, causing some jurisdictions to wait and see how American rules land before moving forward. Hong Kong, however, appears less patient: the Securities and Futures Commission (SFC) is actively advancing proposals to fold crypto companies deeper into the regulatory framework. What to watch next Consensus highlighted several intersecting trends to monitor: whether AI-driven payments materially boost stablecoin and crypto usage; how low bitcoin may go before finding sustainable support; whether prediction markets reshape capital allocation; and how regulatory outcomes in the U.S. and Hong Kong will influence global market structure. Read more AI-generated news on: undefined/news

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