Artificial intelligence and central bank digital currency

Peterson Ozili

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this article is to explore the role of artificial intelligence, or AI, in a central bank digital currency project and its challenges. Artificial intelligence is transforming the digital finance landscape. Central bank digital currency is also transforming the nature of central bank money. This study also suggests some considerations which central banks should be aware of when deploying artificial intelligence in their central bank digital currency project. The study concludes by acknowledging that artificial intelligence will continue to evolve, and its role in developing a sustainable CBDC will expand. While AI will be useful in many CBDC projects, ethical concerns will emerge about the use AI in a CBDC project. When such concerns arise, central banks should be prepared to have open discussions about how they are using, or intend to use, AI in their CBDC projects.

Keywords: artificial intelligence; central bank digital currency; CBDC; machine learning; deep learning; cryptocurrency; CBDC project; CBDC pilot; blockchain (search for similar items in EconPapers)
JEL-codes: E50 E51 E52 E58 O31 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-big, nep-cmp, nep-fmk, nep-mon, nep-pay and nep-ppm
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:121567

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