The Bank for International Settlements (BIS), which includes 63 central banks and monetary authorities, sees significant potential in the widespread adoption of generative artificial intelligence (AI), a technology that many central banks are increasingly interested in. In a survey of 32 central bank members, the BIS found that 71% are already using generative AI, while 26% plan to integrate it into their operations within the next one to two years.
The BIS predicts that all of its members will eventually adopt generative AI to bolster their internal cybersecurity measures.
Central banks currently using generative AI have noted its superior effectiveness in detecting cyber threats compared to traditional tools. These AI tools have improved banks’ response times to cyberattacks and helped identify suspicious trends and anomalies. However, the primary concern for central banks remains the cost of implementing these AI tools.
The BIS report also pointed out significant risks, including social engineering, zero-day attacks, and unauthorized data disclosure. Despite these concerns, central banks believe generative AI tools could eventually take over routine cybersecurity tasks, allowing staff to focus on other initiatives.
Among the BIS members are central banks from major economies such as Australia, China, France, Belgium, Japan, South Korea, Italy, Switzerland, the United Kingdom, and India.
In a related initiative, the BIS has partnered with seven central banks to explore asset tokenization within the monetary system, working alongside private financial institutions. This project, known as “Project Agora,” includes central banks from France, Japan, South Korea, Mexico, Switzerland, the United Kingdom, and the United States Federal Reserve Banks. The initiative will build on a unified ledger concept proposed by BIS, aiming to integrate tokenized commercial bank deposits and tokenized wholesale central bank money.
May 2024, Cryptoniteuae
