Central Banks Remain Cautious on AI Adoption While Dollar Dominance Persists Despite Diversification Efforts

According to a recent survey, 93% of central banks globally do not invest in digital assets.

London:

A survey released Wednesday by the Official Monetary and Financial Institutions Forum reveals that most central banks worldwide have not integrated Artificial Intelligence into their core operations, and digital assets remain largely outside their investment portfolios.

The research, which gathered insights from 10 central banks across Europe, Africa, Latin America, and Asia collectively managing approximately $6.5 trillion in assets, discovered that institutions with the most AI experience express the greatest caution regarding potential risks.

The primary concern identified in the survey is that AI-driven behaviors could potentially "accelerate future crises."

One participant succinctly noted, "AI helps us see more, but decisions must remain with people."

More than 60% of respondents indicated that AI tools—which have already prompted layoffs at technology companies and banking institutions—have not yet been implemented in their core operations.

The report found that "most early applications centered on routine analytical tasks rather than risk management or portfolio construction."

Currently, central banks primarily utilize AI for basic functions, such as data summarization or market monitoring.

The survey also revealed that 93% of central banks do not invest in digital assets, noting that "tokenisation is viewed with interest and cryptocurrencies with caution."

The participating institutions included six banks from G20 nations and two from the G7.

Furthermore, the survey indicated that banks perceive a global shift toward a multipolar system, creating a desire for diversification while maintaining focus on resilience and liquidity—factors that ultimately limit the range of reserves they consider viable.

Although nearly 60% expressed interest in diversifying away from the dollar, the unmatched liquidity of US Treasuries keeps the US currency firmly established.

One working group participant remarked, "We are moving from a bipolar to a multipolar reserve system, but the euro is not ready yet to lead."

The dollar's position as the world's leading reserve currency has faced questions this year due to US President Donald Trump's tariff policies and concerns about Federal Reserve independence. While the euro and China's yuan are expected to gain prominence, the dollar is anticipated to maintain its dominant position in foreign exchange reserves.