IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/121567.html
   My bibliography  Save this paper

Artificial intelligence and central bank digital currency

Author

Listed:
  • Ozili, Peterson K

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.

Suggested Citation

  • Ozili, Peterson K, 2024. "Artificial intelligence and central bank digital currency," MPRA Paper 121567, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121567
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/121567/1/MPRA_paper_121567.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brock, J. Michelle & de Haas, Ralph, 2021. "Discriminatory Lending : Evidence from Bankers in the Lab," Other publications TiSEM 12af373a-8e1a-46dd-afd4-a, Tilburg University, School of Economics and Management.
    2. Jingguang Han & Yuyun Huang & Sha Liu & Kieran Towey, 2020. "Artificial intelligence for anti-money laundering: a review and extension," Digital Finance, Springer, vol. 2(3), pages 211-239, December.
    3. Anneke Kosse & Ilaria Mattei, 2023. "Making headway - Results of the 2022 BIS survey on central bank digital currencies and crypto," BIS Papers, Bank for International Settlements, number 136.
    4. Ballaschk, David & Paulick, Jan, 2021. "The public, the private and the secret: Thoughts on privacy in central bank digital currencies," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 15(3), pages 277-286, September.
    5. Nadia Pocher & Andreas Veneris, 2022. "Central Bank Digital Currencies," Springer Optimization and Its Applications, in: Duc A. Tran & My T. Thai & Bhaskar Krishnamachari (ed.), Handbook on Blockchain, pages 463-501, Springer.
    6. J. Michelle Brock & Ralph De Haas, 2023. "Discriminatory Lending: Evidence from Bankers in the Lab," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 31-68, April.
    7. Bindseil, Ulrich & Panetta, Fabio & Terol, Ignacio, 2021. "Central Bank Digital Currency: functional scope, pricing and controls," Occasional Paper Series 286, European Central Bank.
    8. Bindseil, Ulrich, 2020. "Tiered CBDC and the financial system," Working Paper Series 2351, European Central Bank.
    9. David Kuo Chuen Lee & Li Yan & Yu Wang, 2021. "A global perspective on central bank digital currency," China Economic Journal, Taylor & Francis Journals, vol. 14(1), pages 52-66, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ye Zhang, 2020. "Discrimination in the Venture Capital Industry: Evidence from Field Experiments," Papers 2010.16084, arXiv.org, revised Aug 2022.
    2. Bindseil, Ulrich & Pantelopoulos, George, 2022. "A brief history of payment netting and settlement," IBF Paper Series 02-22, IBF – Institut für Bank- und Finanzgeschichte / Institute for Banking and Financial History, Frankfurt am Main.
    3. Mark Kattenberg & Bas Scheer & Jurre Thiel, 2023. "Causal forests with fixed effects for treatment effect heterogeneity in difference-in-differences," CPB Discussion Paper 452, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Toni Ahner & Katrin Assenmacher & Peter Hoffmann & Agnese Leonello & Cyril Monnet & Davide Porcellacchia, 2024. "The Economics of Central Bank Digital Currency," International Journal of Central Banking, International Journal of Central Banking, vol. 20(4), pages 221-274, October.
    5. Dionysopoulos, Lambis & Marra, Miriam & Urquhart, Andrew, 2024. "Central bank digital currencies: A critical review," International Review of Financial Analysis, Elsevier, vol. 91(C).
    6. Susan Athey & Dean Karlan & Emil Palikot & Yuan Yuan, 2022. "Smiles in Profiles: Improving Efficiency While Reducing Disparities in Online Marketplaces," Papers 2209.01235, arXiv.org, revised Mar 2025.
    7. Chen, S. & Doerr, S. & Frost, J. & Gambacorta, L. & Shin, H.S., 2023. "The fintech gender gap," Journal of Financial Intermediation, Elsevier, vol. 54(C).
    8. Dunbar, Kwamie & Treku, Daniel N., 2024. "Examining the impact of a central bank digital currency on the access to banking," International Review of Financial Analysis, Elsevier, vol. 93(C).
    9. Mertz, Mikkel & Ronchi, Maddalena & Salvestrini, Viola, 2025. "Female Representation and Talent Allocation in Entrepreneurship: The Role of Early Exposure to Entrepreneurs," IZA Discussion Papers 17801, Institute of Labor Economics (IZA).
    10. Vojtech Bartos & Silvia Castro & Kristina Czura & Timm Opitz, 2023. "Gendered Access to Finance: The Role of Team Formation, Idea Quality, and Implementation Constraints in Business Evaluations," CESifo Working Paper Series 10719, CESifo.
    11. Ahnert, Toni & Hoffmann, Peter & Leonello, Agnese & Porcellacchia, Davide, 2023. "Central Bank Digital Currency and financial stability," Working Paper Series 2783, European Central Bank.
    12. Tabea Bucher-Koenen & Andreas Hackethal & Johannes Koenen & Christine Laudenbach, 2021. "Gender Differences in Financial Advice," ECONtribute Discussion Papers Series 095, University of Bonn and University of Cologne, Germany.
    13. Diego Javier Ubfal, 2023. "What Works in Supporting Women-led Businesses?," World Bank Publications - Reports 38564, The World Bank Group.
    14. Max Fuchs, 2022. "CBDC as Competitor for Bank Deposits and Cryptocurrencies," MAGKS Papers on Economics 202210, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    15. Assenmacher, Katrin & Ferrari Minesso, Massimo & Mehl, Arnaud & Pagliari, Maria Sole, 2024. "Managing the transition to central bank digital currency," Working Paper Series 2907, European Central Bank.
    16. Arti Grover & Viollaz,Mariana, 2025. "The Gendered Impact of Social Norms on Financial Access and Capital Misallocation," Policy Research Working Paper Series 11041, The World Bank.
    17. Asuamah Yeboah, Samuel & Mogre, Diana & Nartey Menzo, Benjamin Prince, 2024. "Beyond the Numbers: Social Factors in Credit Risk," MPRA Paper 122363, University Library of Munich, Germany, revised 20 Aug 2024.
    18. Ozili, Peterson Kitakogelu, 2024. "Central bank digital currency and the monetary policy and financial stability implications," MPRA Paper 120146, University Library of Munich, Germany.

    More about this item

    Keywords

    artificial intelligence; central bank digital currency; CBDC; machine learning; deep learning; cryptocurrency; CBDC project; CBDC pilot; blockchain;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:121567. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.