Artificial Intelligence In Finance: Cross Border Payments, Remittances, And The Future Of Digital Currencies

Abstract

The global financial system is undergoing great transformation in light of the advent of Artificial Intelligence (AI), reshaping cross-border payments and international remittances and changing the nature of digital currencies. Traditional financial systems have various inefficiencies, including high transaction costs, time delays, regulatory hurdles, and the threat of fraud and theft. This paper, examine the implementation of AI technologies including machine learning, natural language processing, predictive analytics, bots, and block chain based intelligence and how these technologies are being used to eliminate existing inefficiencies and increase global financial inclusion. The research demonstrates how AI algorithms are capable of providing real-time risk mitigation and fraud detection, streamlining payment routing, expediting settlement, reducing costs, and enhancing trust in cross-border transactions. In addition, AI is enabling remittance transfers to become faster, cheaper, safer, and less human error prone. Finally, analysing the application of AI in a digital currency system, including Central Bank Digital Currencies (CBDCs) and decentralized cryptocurrencies, in terms of governance, scalability, and security. This study also focuses on some of the challenges associated with AI in finance, including privacy and consent of data, ethical governance, algorithmic biases, and harmonization of regulation across government jurisdictions. This study argues that the future of AI in digital finance rely on technological innovation in combination with building collaboration among governments and the private sector on responsible and accountable policies and practices that are transparent, ethical, and globally coordinated. Ultimately, this article a contribution to ongoing discussion because it demonstrate the intended responsible change of cross-country financial flows as we depend on technology like AI, which aligns with the intention and possibility in the future development of digital currencies.

Keywords:

Artificial Intelligence, Finance, Cross Border Payments, Remittances, Digital Currencies