A new survey of major reserve-managing institutions shows that global central banks remain cautious in adopting artificial intelligence and continue to rely heavily on the dollar despite growing interest in diversifying their holdings. The findings reveal that although policymakers acknowledge the efficiency gains offered by AI, they are wary of allowing advanced systems to influence core decision-making functions. Institutions participating in the survey oversee trillions in assets, yet the majority reported that AI is used primarily for basic tasks such as scanning market developments or consolidating internal data. Policymakers expressed concern that the speed and scale of automated decision flows could amplify volatility, particularly during periods of market stress. While some institutions experimenting with AI tools have found value in improved analytical capabilities, they reiterated the importance of maintaining human oversight in processes involving risk assessment or investment allocation. The report noted that early adoption efforts remain conservative, highlighting a gap between technological possibilities and the practical risk appetite of large public financial institutions.
The survey also highlighted that digital assets remain outside the reserve portfolios of nearly all participating central banks. Respondents pointed to uncertainty surrounding regulation, liquidity standards and long-term stability as primary reasons for avoiding cryptocurrencies and tokenised products. Interest in tokenisation as a concept continues to grow, but few institutions consider current market structures developed enough to support large-scale reserve allocation. The cautious stance underscores how strict reserve management principles prioritise liquidity, predictability and established legal frameworks. These factors work against newer digital instruments, which remain comparatively volatile and lack the deep markets required for institutions managing hundreds of billions of dollars. Analysts said the findings reflect a broader trend where public institutions prefer to observe developments in digital finance rather than engage directly, especially while global regulatory frameworks are still evolving.
Despite intentions among many central banks to diversify their reserves as the global economy moves toward a more multipolar configuration, the dollar remains dominant because no alternative offers the same scale, liquidity and market depth. Almost 60 percent of respondents indicated a desire to reduce exposure to the dollar, yet the unmatched liquidity of U.S. Treasuries continues to anchor reserve allocation. Policymakers noted that although geopolitical uncertainty and trade tensions have raised questions about the long-term direction of U.S. policy, the dollar still provides stability at a scale not currently matched by the euro or the yuan. The survey also found that while global reserve dynamics are shifting gradually, practical considerations continue to outweigh strategic ambitions. For currency markets, the findings reinforce the view that the dollar’s structural role remains largely intact, even as discussions of diversification accelerate. The persistence of this dynamic suggests that USD liquidity will continue to shape global capital flows, offering important insight into how reserve managers are navigating an increasingly complex financial environment.
