Have a personal or library account? Click to login
Artificial Intelligence, Fintech and Challenges to Central Banks Cover

Artificial Intelligence, Fintech and Challenges to Central Banks

Open Access
|Sep 2024

References

  1. Acemoğlu, D. and Johnson, S. (2023). Rebalancing AI. Finance and Development Magazine. IMF. Retrieved from: https://www.imf.org/en/Publications/fandd/issues/2023/12/Rebalancing-AIAcemoglu-Johnson
  2. Aguilar, A., Frost, J., Guerra, R., Kamin, S. and Tombini, A. (2024). Digital payments, informality and economic growth. BIS Working Papers No 1196. Retrieved from: https://www.bis.org/publ/work1196.pdf
  3. Aldasoro, I., Doerr, S., Gambacorta, L., Notra, S., Oliviero, T. and Whyte, D. (2024). Generative Artificial Intelligence and Cyber Security in Central Banking. BIS Paper. No 145. Retrieved from: https://www.bis.org/publ/bppdf/bispap145.pdf
  4. Araujo, D., Doerr, S., Gambacorta, L. and Tissot, B. (2024). Artificial intelligence in central banking. BIS Bulletin No 84. Retrieved from: https://www.bis.org/publ/bisbull84.pdf
  5. Barr, M.S. (2024, January 7). Opening Remarks at Conference on Measuring Cyber Risk in the Financial Services Sector, Boston, Massachusetts. Retrieved from: https://www.federalreserve.gov/newsevents/speech/files/barr20240117a.pdf
  6. Berg, A., Papageorgiou, C. and Vaziri, M. (2023). Technology’s Bifurcated Bite. Finance & Development Magazine, IMF. Retrieved from: https://www.imf.org/en/Publications/fandd/issues/2023/12/Technology-bifurcated-bite-Berg-Papageorgiou-Vaziri
  7. BIS (2024a). BIS Annual Economic Report 2024. Artificial intelligence and the economy: implications for central banks. BIS. Retrieved from: https://www.bis.org/publ/arpdf/ar2024e3.pdf
  8. BIS (2024b). Digitalisation of finance. Retrieved from: https://www.bis.org/bcbs/publ/d575.pdf
  9. BIS Innovation Hub (2023a). Project Aurora: The power of data, technology and collaboration to combat money laundering. BIS. Retrieved from: https://www.bis.org/publ/othp66.pdf
  10. BIS Innovation Hub (2023b). Project Polaris, Part 2: A security and resilience framework for CBDC systems. BIS. Retrieved from: https://www.bis.org/publ/othp70.pdf
  11. BIS Innovation Hub (2024). Project Gaia Enabling climate risk analysis using generative AI. BIS. Retrieved from: https://www.bis.org/publ/othp84.pdf
  12. Bowman, M. W. (2024, May 15). Innovation and the evolving financial landscape. Speech at the Digital Chamber DC Blockchain Summit 2024, Washington DC. Retrieved from: https://www.bis.org/review/r240517a.pdf
  13. Brollo, F., Dabla-Norris, E., De Mooij, R., Garcia-Macia, D., Hanappi, T., Liu, L., Nguyen, & Anh D. M. (2024). Broadening the Gains from Generative AI: The Role of Fiscal Policies. IMF Staff Discussion Note SDN2024/002, Retrieved from: https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2024/06/11/Broadening-the-Gains-from-Generative-AI-The-Role-of-Fiscal-Policies-549639?cid=ca-com-homepage
  14. Brynjolfsson, E. and Unger, G. (2023). The Macroeconomics of Artificial Intelligence. Finance & Development Magazine. Retrieved from: https://www.imf.org/en/Publications/fandd/issues/2023/12/Macroeconomics-of-artificial-intelligence-Brynjolfsson-Unger
  15. Carstens A. (2024, May 6). Technological innovation: small steps and giant leaps. Speech at the https://www.thecrimson.com/article/2024/6/4/ai-boom-arrives-at-harvard/. Retrieved from: https://www.bis.org/speeches/sp240506.htm
  16. Cazzaniga, M., Jaumotte, F., Li, L., Melina, G., Panton, A.J., Pizzinelli, C., Rockall, E.J. & Tavares, M.M. (2024). Gen-AI: Artificial Intelligence and the Future of Work. IMF Staff Discussion Note SDN2024/001, IMF. Retrieved from: https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2024/01/14/Gen-AI-Artificial-Intelligence-and-the-Future-of-Work-542379
  17. Cipollone, P. (2024, July 4). Artificial intelligence: a central bank’s view. Speech at the National Conference of Statistics on official statistics at the time of artificial intelligence. ECB. Retrieved from: https://www.ecb.europa.eu/press/key/date/2024/html/ecb.sp240704_1~e348c05894.en.html
  18. Crowdstrike (July 21, 2024). Remediation and Guidance Hub: Falcon Content Update for Windows Hosts. Retrieved from: https://www.crowdstrike.com/falcon-content-update-remediation-and-guidance-hub/
  19. Di Iorio, A., Kosse, A. and Mattei, I. (2024). Embracing diversity, advancing together – results of the 2023 BIS survey on central bank digital currencies and crypto. BIS Papers no.147. Retrieved from: https://www.bis.org/publ/bppdf/bispap147.pdf
  20. Doerr, S., Gambacorta, L., and Serena,J. (2021). Big data and machine learning in central banking. BIS Working Papers No 930. Retrieved from: https://www.bis.org/publ/work930.pdf
  21. Duffy, H. (2024). “Hyped Just About Right”: How the AI Boom is Reshaping Research at Harvard. The Harvard Crimson, Retrieved from: https://www.thecrimson.com/article/2024/6/4/ai-boom-arrives-at-harvard/
  22. European Parliamentary Research Service (2020). The Impact of the General Data Protection Regulation (GDPR) on Artificial Intelligence. Retrieved from: https://www.europarl.europa.eu/RegData/etudes/STUD/2020/641530/EPRS_STU(2020)641530_EN.pdf
  23. Fabris and Ješić (2023). Are Gold and Bitcoin a Safe Haven for European Indices? Journal of Central Banking Theory and Practice, 2023, 1, pp. 27-44. DOI: 10.2478/jcbtp-2023-0002. Retrieved from: https://www.cbcg.me/slike_i_fajlovi/fajlovi/journal/vol12/jcbtp-2023-0002.pdf
  24. Fabris, N. (2019). Cashless Society – The Future of Money or a Utopia? Journal of Central Banking Theory and Practice, 2019, 1, pp. 53-66. DOI: 10.2478/jcbtp-2019-0003. Retrieved from: https://intapi.sciendo.com/pdf/10.2478/jcbtp-2019-0003
  25. Fabris, N. (2024). Monetary Policy between Stability and Growth. Journal of Central Banking Theory and Practice, 2024, 1, pp. 27-42. DOI: 10.2478/jcbtp-2024-0002. Retrieved from: https://www.cbcg.me/slike_i_fajlovi/fajlovi/journal/vol13/jcbtp-2024-0002.pdf
  26. FSB (2023). High-level Recommendations for the Regulation, Supervision and Oversight of Global Stablecoin Arrangements. Final report. Retrieved from: https://www.fsb.org/wp-content/uploads/P170723-3.pdf
  27. Georgieva, K. (2024). AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity. Retrieved from: https://www.imf.org/en/Blogs/Articles/2024/01/14/ai-will-transform-the-global-economy-lets-make-sure-it-benefits-humanity
  28. Gopinath, G. (2023). Harnessing AI for Global Good. Finance & Development Magazine. Retrieved from: https://www.imf.org/en/Publications/fandd/issues/2023/12/ST-harnessing-AI-for-global-good-Gita-Gopinath
  29. Gopinath, G. (2024, May 23). Crisis Amplifier? How to Prevent AI from Worsening the Next Economic Downturn. Speech at AI for Good Global Summit, Geneva, Switzerland. Retrieved from: https://www.imf.org/en/News/Articles/2024/05/30/sp053024-crisis-amplifier-how-to-prevent-ai-from-worsening-the-next-economic-downturn
  30. Hawking, S. (2016, October 19). Speech at the launch of the Leverhulme Centre for the Future of Intelligence. Retrieved from: https://www.cam.ac.uk/research/news/the-best-or-worst-thing-to-happen-to-humanity-stephen-hawking-launches-centre-for-the-future-of
  31. IMF (2024). April 2024 Global Financial Stability Report: The Last Mile: Financial Vulnerabilities and Risks, IMF, Washington. Retrieved from: https://www.imf.org/en/Publications/GFSR/Issues/2024/04/16/global-financial-stability-report-april-2024
  32. ISO/IEC 23053:2022, Framework for Artificial intelligence (AI), System using machine learning (ML), The International Organization for Standardization and The International Electrotechnical Commission, Switzerland, 2022.
  33. ISO/IEC 23894:2023, Information technology – Artificial intelligence – Guidance on risk management, The International Organization for Standardization and The International Electrotechnical Commission, Switzerland, 2023.
  34. ISO/IEC 42001:2023, Information technology – Artificial intelligence – Management system, The International Organization for Standardization and The International Electrotechnical Commission, Switzerland, 2023.
  35. Kaczmarek, P. (2022). Central Bank Digital Currency: Scenarios of Implementation and Potential Consequences for Monetary System. Journal of Central Banking Theory and Practice, 2022, 3, pp. 137-154. DOI: 10.2478/jcbtp-2022-0027. Retrieved from: https://sciendo.com/article/10.2478/jcbtp-2022-0027
  36. Lagarde, C. and Panetta, F. (2022). Key objectives of the digital euro. The ECB Blog, 13 July. Retrieved from: https://www.ecb.europa.eu/press/blog/date/2022/html/ecb.blog220713~34e21c3240.en.html
  37. Liang, N. (2024). Remarks on Artificial Intelligence in Finance. Speech at the OECD – FSB Roundtable on Artificial Intelligence in Finance, Paris, 22 May 2024. Retrieved from: https://www.fsb.org/2024/06/remarks-by-nellie-liangon-artificial-intelligence-in-finance/
  38. Luburić, R. (2018). A Model of Crisis Prevention (Based on managing change, quality management and risk management). Journal of Central Banking Theory and Practice, 2019, 2. pp. 33-49. DOI: 10.2478/jcbtp-2019-0012. Retrieved from: https://intapi.sciendo.com/pdf/10.2478/jcbtp-2019-0012
  39. McKinsey (2024a). The state of AI in early 2024: Gen AI adoption spikes and starts to generate value. Retrieved from: https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai#/
  40. McKinsey (2024b). Steady progress in approaching the quantum advantage. Retrieved from: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/steady-progress-in-approaching-the-quantum-advantage
  41. Microsoft (July 20, 2024). Helping our customers through the CrowdStrike outage. Retrieved from: https://blogs.microsoft.com/blog/2024/07/20/helping-our-customers-through-the-crowdstrike-outage/
  42. National Institute of Standards and Technology (NIST) (2023). US Artificial Intelligence Risk Management Framework. Retrieved from: https://nvlpubs.nist.gov/nistpubs/ai/NIST.AI.100-1.pdf
  43. Noy, S. and Zhang, W. (2023). Experimental Evidence on the Productivity Effects of Generative Artificial Intelligence. Science, vol 6654, 381, pp. 187–92. DOI: 10.1126/science.adh2586. Retrieved from: https://www.science.org/doi/10.1126/science.adh2586
  44. Papenbrock, J. and Ashley, J. (2022). Modern Computing Platforms as Key Technology for Central Banks, Financial Supervisors, and Regulators. IFC-Bank of Italy Workshop on “Data Science in Central Banking: Applications and tools”. Retrieved from: https://www.bis.org/ifc/publ/ifcb59_04.pdf
  45. PWC (July 20, 2024). Demystifying cryptocurrency and digital assets. Retrieved from: https://www.pwc.com/us/en/tech-effect/emerging-tech/understanding-cryptocurrency-digital-assets.html
  46. Regulation (EU) 2024/1689 of the European Parliament and of the Council (13 June 2024). Laying Down Harmonised Rules on Artificial Intelligence and Amending Regulations (EC) No 300/2008, (EU) No 167/2013, (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1139 and (EU) 2019/2144 and Directives 2014/90/EU, (EU) 2016/797 and (EU) 2020/1828 (Artificial Intelligence Act). Retrieved from: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=OJ:L_202401689
  47. Risk.net (2024, March 27). Top 10 operational risks for 2024. Retrieved from: https://www.risk.net/risk-management/7959161/top-10-operational-risks-for-2024
  48. Soderberg, G., Kiff, J., Bechara, M., Forte, S., Kao, K., Lannquist, A., Sun, T., Tourpe, H., & Yoshinaga, A. (2023). “How Should Central Banks Explore Central Bank Digital Currency?: A Dynamic Decision-Making Framework.” IMF Fintech Note 2023/008, International Monetary Fund, Washington, DC. Retrieved from: https://www.imf.org/en/Publications/fintech-notes/Issues/2023/09/08/How-Should-Central-Banks-Explore-Central-Bank-Digital-Currency-538504
  49. Tobias, A. and Mancini-Griffoli, T. (2021). The Rise of Digital Money. Annual Review of Financial Economics. 2021, 13, pp. 57–77. Retrieved from: https://www.annualreviews.org/content/journals/10.1146/annurev-financial-101620-063859
  50. Vives, X. (2019). Digital Disruption in Banking. The Annual Review of Financial Economics. 2019, 11, pp. 243–272. Retrieved from: https://www.annualreviews.org/content/journals/10.1146/annurev-financial-100719-120854
  51. Vučinić, M. (2020). Fintech and Financial Stability Potential Influence of FinTech on Financial Stability, Risks and Benefits. Journal of Central Banking Theory and Practice, 2020, 2, pp. 43-66. DOI: 10.2478/jcbtp-2020-0013. Retrieved from: https://intapi.sciendo.com/pdf/10.2478/jcbtp-2020-0013
  52. Vučinić, M. and Luburić, R. (2022). Fintech, Risk-Based Thinking and Cyber Risk, Journal of Central Banking Theory and Practice, 2022, 2, pp. 27-53. DOI: 10.2478/jcbtp-2022-0012. Retrieved from: https://www.cbcg.me/slike_i_fajlovi/fajlovi/journal/vol11/jcbtp-2022-0012.pdf
  53. Vučinić, M. and Luburić, R. (2023). Project Management in Central Banks, Journal of Central Banking Theory and Practice, 2023, 2, pp. 5-31. DOI: 10.2478/jcbtp-2023-0012. Retrieved from: https://www.cbcg.me/slike_i_fajlovi/fajlovi/journal/vol12/jcbtp-2023-0012.pdf
Language: English
Page range: 5 - 42
Submitted on: Dec 25, 2023
Accepted on: Mar 1, 2024
Published on: Sep 19, 2024
Published by: Central Bank of Montenegro
In partnership with: Paradigm Publishing Services
Publication frequency: 3 issues per year

© 2024 Milena Vučinić, Radoica Luburić, published by Central Bank of Montenegro
This work is licensed under the Creative Commons Attribution 4.0 License.