AI and Crypto: The Twin Engines Powering the Future of Finance

In a candid and wide-ranging interview, Chandra Duggirala, founder and CEO of Tides Network, a core contributor to Portal to Bitcoin, joined Sergiu Hamza to discuss his company’s position on the cryptocurrency and AI sectors and the larger forces shaping (and stifling) decentralized finance (DeFi). From disrupting centralized control to challenging governments’ grip on money, the conversation veered into some hard-hitting truths about the future of crypto.

The Problem with Custodial Risks—and Why It Matters More Than You Think

At the heart of the problem crypto is facing today lies one of its most critical challenges: custody. Chandra explained how, for years, centralized exchanges have been the primary method for conducting cross-chain transactions. The problem? “Centralized exchanges are custodians of your funds, and history has shown us how risky that can be, from Mt. Gox to FTX. Your coins are safe—until they’re not.” He highlighted the staggering $3 billion lost in 2022 alone due to bridge collapses and hacks, making a solid case for why users should rethink their trust in centralized entities.

Portal’s answer is a trust-minimized cross-chain system designed to remove the intermediary risk altogether. “We wanted to build something that offered the speed, liquidity, and user experience of a centralized exchange without the custodial risk. That’s what BitScaler enables us to do,” Chandra said, explaining the underlying technology that allows atomic swaps without ever touching Layer 1 (L1) or leaving assets in the hands of a middleman.

AI Meets Crypto: Automation Without Surrendering Control

The conversation shifted to the AI frontier. Chandra introduced Rafa, a tool offering AI-powered investment insights across multiple dimensions, such as sentiment analysis for crypto, fundamental analysis for traditional finance, and portfolio risk assessments. “You need intelligence to know what assets to buy and when to rebalance your portfolio. RAFA offers that intelligence without taking control from the user.”

But while Rafa provides critical information, Chandra quickly draws a line: “We’re not here to build a robot that executes trades for you—this isn’t the age of giving everything over to some machine you can’t even see. Humans still need to press the button. It’s about empowering users, not replacing them.”

Why Decentralized Finance Scares Governments—and They’re Right to Be Afraid

The most evocative part of the interview came when the discussion turned to Central Bank Digital Currencies (CBDCs) and the potential for state control over financial transactions. Chandra didn’t hold back, calling CBDCs a form of “complete monetary socialism.” He argued that governments, especially in Europe and China, envy the social control enabled by such digital currencies. “Look at China—they want absolute control over financial transactions. Europeans are looking at that with envy. It’s on-brand for them.”

In his view, Bitcoin and decentralized protocols like Portal represent a direct challenge to this type of control. “The problem isn’t that governments don’t like Bitcoin; the problem is that they can’t control it. The power of the printing press is what fuels national sovereignty. If Bitcoin really takes off, do you think governments will just allow that to happen without a fight?” This sentiment encapsulates a growing tension between decentralized finance and powerful states’ ambitions to leverage digital currencies for even more control.

The Rise of Institutional Adoption—Or the Lack Thereof

While some in the crypto space eagerly await the flood of institutional investment, Chandra remains skeptical. “Institutional adoption has been ‘just around the corner’ for at least seven or eight years. It still hasn’t come.” He pointed out that the nature of capital flow has changed with the rise of ETFs, which draw from retirement and institutional investors rather than retail speculators. “The days of people dumping their Bitcoin gains into risky altcoins are over—institutions don’t operate like that. They’re more likely to sit on ETFs and wait for the market to shift.”

However, he did note that the infrastructure Portal and Rafa are building is designed to be institutional-grade. “We’re not excluding institutional investors, but they won’t be the first movers here. It’s retail investors who care about self-custody and risk minimization who will drive this change from the ground up.”

The True Face of Decentralization—and Why It’s Not for the Faint of Heart

Duggirala also touched on the challenges of true decentralization, particularly around user experience and self-custody. “If you want customer support to recover your funds when you mess up, decentralization isn’t for you. There’s no hotline to call when your coins are gone.” He stressed that while Portal’s system is as easy, if not easier, than centralized exchanges, there’s a tradeoff: “Self-custody means you have to be responsible for your assets. People who expect a safety net are living in a fantasy world.”

And it’s not just individual investors that face this challenge—governments, too, are struggling to grasp the implications of decentralized technology. Sergiu raised whether decentralized finance will face regulatory crackdowns, particularly as countries seek ways to control DeFi. Chandra’s response? “Will there be crackdowns? Who knows. But the beauty of decentralized protocols is that they don’t need permission to exist. They operate globally, and as long as users understand the value, nothing stops them from flourishing.”

Where Are We Headed? A Clash of Economies and Ideologies

As the conversation wrapped up, the discussion turned to the future of crypto and global finance. Duggirala pointed out that traditional financial systems are entering a period of economic uncertainty. “We are drowning in debt, and inflation is inevitable. Governments are going to print more money—they have no choice. The only question is, how long before people wake up and start migrating to fixed-supply assets like Bitcoin?”

He acknowledged that Bitcoin’s future isn’t guaranteed but argued that its fixed supply offers a clear advantage in an inflationary world. “When liquidity conditions ease, and central banks inevitably start printing again, you’ll see Bitcoin’s value soar because it’s immune to the endless inflation that fiat currencies are subject to.”

Success Isn’t About Wealth—It’s About Survival

When asked about his definition of success for the Portal and Rafa projects, Duggirala’s response was unexpected. “Success isn’t about making millions or buying a yacht. It’s about building something that people can use and lasts.” He noted that the goal isn’t just to create wealth but to offer a system people trust to safeguard their assets in a world where trust in governments and traditional financial institutions is eroding.

“The real challenge for crypto founders isn’t building tech—creating something that truly offers value. Most people don’t care about the tech; they care about results. And that’s what we’re focusing on.”

Final Thoughts: Crypto’s War for the Future

As the interview ended, Chandra left us with a sobering thought: “Governments specialize in one thing—gaining and keeping power. Decentralization offers an alternative, but don’t expect the powers that be to just hand over the keys without a fight. Bitcoin might seem inevitable to some, but nothing is inevitable when it threatens the status quo. We’re in for a battle between centralized control and decentralized freedom.”

With that, it’s clear that Chandra Duggirala and his team aren’t just building products—they’re pushing the boundaries of what decentralized finance can achieve while challenging the foundations of traditional power structures. Whether through Portal’s seamless cross-chain swaps or Rafa’s AI-driven insights, they’re preparing for a future where control over money may no longer reside in the hands of governments but the people.