Agentic AI meets Suptech at the National Bank of Georgia by CB On Air

Central banks are using artificial intelligence for faster, more precise data analysis, anomaly detection and risk management to improve efficiency, insights and decision-making. However, AI should never be a substitute for accountability, say the International Monetary Fund’s legal experts Marianne Bechara, Alessandro Gullo and Federica Giordano. Indeed, existing statutory immunities and good faith protections may be strained if officials rely on AI without meaningful oversight. Explainability should meet public-law transparency obligations. Therefore, internal safeguards and legal clarity on liability are essential, and legal teams are increasingly involved from AI procurement through deployment. From governance and audits to kill switches and exit rights, Bechara, Gullo and Giordano speak to Central Banking about how central banks can protect institutional autonomy.

Under the Genius Act, stablecoin issuers must hold short-term Treasuries in their reserves. The Treasury market is the largest and deepest financial market in the world, but it’s also a fragile one. In March 2020, a net increase in sales of Treasuries versus the prior month of less than $100 billion caused the entire market to seize up. What happens in a world where, as Treasury secretary Scott Bessent predicts, there are $2 trillion of stablecoins outstanding? Meanwhile, as the stablecoin market grows, the incentive for hackers to attack public blockchains increases. Further, can monetary policy prove fatal if the price of Treasuries falls? These are just some of the financial and technological risks MIT’s Dan Aronoff and Bank of England’s Chris Calabia discuss on the inaugural episode of Central Banking’s new Tech Talk series.

De La Rue's Nikki Strickland speaks to Central Banking about cash in the payments landscape.

Business and financial cycles follow expansion, peak, recession and recovery phases. During the low interest rate environment, after the global financial crisis, many nations around the world were in the expansion phase. The "global unsyncing" can be viewed in terms of the financial and business cycles separating, as well as advanced and emerging economies following different paths as the Fed hikes. Central Banking welcomes back Diana Dengo, investment director at Wellington Management, to talk about this phenomenon.

Lias Hammouche, global head of financial and collateral services at BNP Paribas, talks to Central Banking about the ECB's decision to expand its collateral framework during the pandemic, to preserve liquidity in the financial system.

Clément Duhamel, business development and customer success manager at Invoke Software, speaks to Central Banking about mapping entity-relationships.

Clément Duhamel, business development and customer success manager at Invoke Software, speaks to Central Banking about the evolution of regtech.

In this episode, Sylvia Kiesewalter, director at BlackRock solutions, talks about how technology can help reserve managers assess risk, returns and diversification, against different stress scenarios.

BlackRock's Marija Djordjevic talks about macro forces shaping global markets and how clients are hedging their portfolios using technology.