Bank AI

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 According to IMF Managing Director Kristalina Georgieva, artificial intelligence (AI) has the potential to amplify the benefits of central bank digital currencies (CBDCs).&nbsp;
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Speaking at the ongoing Singapore FinTech Festival at Tampines on Wednesday, November 15, 2023, the IMF chief <a href="https://www.cnbc.com/2023/11/15/imf-says-central-bank-digital-currencies-can-replace-cash.html" rel="noopener noreferrer nofollow">highlighted the prospect of generative AI significantly enhancing CBDC functionalities.&nbsp;</a>
This, according to Georgieva, could pave the way for improved financial inclusion by offering swift and precise credit assessments based on diverse data sources. Additionally, she underscored the potential for AI to deliver tailored assistance to individuals with limited financial literacy.
The IMF chief’s comments draw attention to the increasing recognition of AI’s pivotal role in driving the global adoption of CBDCs. <a href="https://www.elibrary.imf.org/view/journals/063/2023/011/article-A001-en.xml#:~:text=Indeed%2C%20retail%20CBDC%20issuance%20is,are%20considering%20for%20retail%20CBDC." rel="noopener noreferrer nofollow">According to the IMF</a>, over 100 countries are exploring CBDCs, with <a style="color: #0000ff;" href="https://defi-planet.com/2023/07/survey-reveals-central-banks-growing-interest-in-cbdcs-predicts-15-retail-and-9-wholesale-cbdcs-by-2030/" rel="noopener noreferrer nofollow">many planning to or have launched pilot programs</a>. However, only 11 countries have fully implemented digital currencies to date.
Georgieva acknowledged that while AI presents opportunities, its integration with CBDCs also poses risks that need careful management. She stressed the importance of incorporating robust privacy protections and eliminating biases to prevent exacerbating existing inequalities.&nbsp;
Notably, the IMF’s chief optimism about CBDCs replacing physical cash echoes the stance of other institutions like the Bank for International Settlements (BIS).&nbsp;
Earlier this year, the BIS <a style="color: #0000ff;" href="https://defi-planet.com/2023/06/bank-for-international-settlements-endorses-tokenization-as-future-of-monetary-systems-proposes-unified-ledger-for-cbdcs-and-tokenized-assets/" rel="noopener noreferrer nofollow">released a report asserting that regulated tokenization platforms overseen by central banks would play a crucial role</a> in future monetary systems. The report also proposed the development of a universal ledger capable of accommodating Central Bank Digital Currencies (CBDCs) and tokenized assets.
However, Georgieva acknowledged that CBDCs are an emerging technology that requires more research to realize their full potential. She encouraged central banks to persist in their preparations for future deployment, even amid uncertainties regarding specific use cases.
The IMF managing director also emphasized the need for international collaboration on CBDCs and AI. This includes designing CBDCs to facilitate efficient cross-border payments.&nbsp;
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The post <a rel="noopener noreferrer nofollow" href="https://defi-planet.com/2023/11/imf-chief-highlights-ais-crucial-role-in-shaping-the-development-of-cbdcs/">IMF Chief Highlights AI’s Crucial Role in Shaping the Development of CBDCs</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://defi-planet.com">DeFi Planet</a>.

IMF Chief Highlights AI’s Crucial Role in Shaping the Development of CBDCs

DeFi Planet

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