Central Banks Alarmed by AI Threat and Reluctant to Move Away from the Dollar, Survey Reveals – Reuters

A recent survey highlights that central banks across the globe are expressing caution regarding Artificial Intelligence (AI) and the challenges associated with moving away from the US dollar as the dominant reserve currency. Despite the potential benefits of AI in financial stability and monitoring, concerns linger about risks, regulatory issues, and the technological divide among nations. Additionally, many central banks are grappling with the complexities of diversifying their currency reserves while maintaining economic stability. The survey underscores a reluctance to fully embrace AI technologies due to uncertainties in governance and security. Furthermore, the dollar’s entrenched position presents a significant hurdle for central banks aiming to explore alternative currencies or digital assets. As central banks navigate this evolving landscape, balancing innovation and stability will remain crucial in their financial strategies. This insight into the current mindset of central banks emphasizes the cautious approach towards transformative technologies and currency diversification efforts in a volatile global economy.

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