[🇧🇩] Artificial Intelligence-----It's challenges and Prospects in Bangladesh

[Saif]

Future of AI-driven digital currency in Bangladesh

The speech by Brett King, futurist and author of the bestselling book Bank 4.0, at Bankers Meet in Dhaka recently, organised by Filps in association with City Bank, Prime Bank, and AB Bank, has deeply inspired me to explore the future of AI-driven financial technology. His insights sparked a partic

thefinancialexpress.com.bd

Future of AI-driven digital currency in Bangladesh

The speech by Brett King, futurist and author of the bestselling book Bank 4.0, at Bankers Meet in Dhaka recently, organised by Filps in association with City Bank, Prime Bank, and AB Bank, has deeply inspired me to explore the future of AI-driven financial technology. His insights sparked a particular interest in digital currencies, specially Central Bank Digital Currency (CBDC) and Stablecoin, and their potential impact on the future of financial landscape in Bangladesh.

As financial technology evolves at a quicker pace and the integration of artificial intelligence (AI) into currency systems is reshaping how societies/people use & manage money. One of the most significant transformations lies in how money is created, managed, and used. In this context, CBDC, Bitcoin, and Stablecoin will be shaping the future of money each with different features, strengths, and limitations. The race towards cited digital currencies has raised critical questions about stability, volatility, usability, popularity, efficiency, and security.

In Bangladesh, financial inclusion, digital infrastructure, and economic digitalisation adoption are critical. The choice of digital currency especially in an AI-integrated system can redefine the future of financial landscape. The decision on which digital currency model to adopt is really crucial for ensuring long-term economic stability, financial inclusion, and growth.

Understanding the key players in digital currency: Stablecoin. The Hot Topic in the Evolving Digital Economy: Stablecoin is a crypto currency attached with a stable asset like US Dollar or Gold. The most popular example includes USDT (Tether) and USDC. It aims to combine the benefits of digital currency with price stability removing volatility.

CBDC (Central Bank Digital Currency). This is a digital version of country’s national currency issued and regulated by central bank. It retains the full backing and authority of the government. In our country, Bangladesh Bank is currently exploring the feasibility of a Digital Taka.

Crypto currency – Bitcoin. Bitcoin is the pioneer of crypto currency which is decentralised, highly volatile, and operates without a central authority or regulator. It operates on blockchain technology and market dynamics.

The role of AI: AI can easily detect abnormal patterns in CBDC transactions in real time and improves the trust in the system. It is an advantage of CBDC over decentralised crypto currencies. AI-enabled CBDC can also respond to macroeconomic conditions faster than traditional monetary tools. In contrast, Bitcoin operates outside of any policy control. Stablecoins is powered by AI algorithms and can optimize routing of international transfers, offering a faster and cheaper alternative to SWIFT or remittance services like Western Union, Ria, etc.

Choice for Bangladesh: Bangladesh has been digitising economy rapidly, with increasing mobile banking usage (MFS like bKash, Nagad, OK Wallet, MeghnaPay or any other mobile banking app), a large unbanked population, and significant remittance flows from abroad.

From infrastructural context, AI integration in banking is still in its beginning stage in Bangladesh, but rapid progress in fintech adoption will open doors for state-backed AI-integrated CBDC. From regulatory environment perspective, the central bank of Bangladesh has been cautious towards crypto currencies like Bitcoin due to volatility and AML (Anti-Money Laundering) concerns. However, our central bank has shown openness towards exploring CBDC - Digital Taka.

CBDC- Digital Taka is likely to be the most viable and dominant form of digital currency for domestic transactions in Bangladesh due to its regulatory support, stability, and compatibility with national monetary policy.

Stablecoin may become prominent in cross-border transactions, offering lower remittance costs and faster processing; provided regulatory clarity improves or the central bank launches a state-backed stablecoin tied to Taka or USD.

Bitcoin and other crypto currencies will remain restricted due to their volatility, speculative nature, and concerns over AML (Anti-Money Laundering) compliance.

While Bitcoin brought blockchain into the mainstream, its lack of regulatory control and extreme volatility make it unsuitable for broad use in Bangladesh. In contrast, Stablecoin and CBDC powered by AI offer stability, efficiency, security, inclusiveness, governmental control and regulatory ease. This transformation in Bangladesh will be fully based on government decision for the adoption of CBDC and Stablecoin.

Strategic investment in digital infrastructure, regulatory frameworks, pilot programs for Digital Taka, cross-border stablecoin settlements, and AI talent development will be the key factors for banking sector in Bangladesh to get full benefit from this AI-financial revolution. If implemented wisely, an AI-integrated Digital Taka may revolutionise the country’s financial ecosystem, advancing transparency, inclusion, and efficiency across the board.

The writer is SVP & Head of Digital Channels, Prime Bank PLC.​

 

[Saif]

Readying youth for an AI-driven workforce

The world has undergone many transformations and the lives of people inside it have transformed many times. From the Dark Ages to the Age of Enlightenment to the Age of Science and Technology, how people lived and earned a living has acquired different meanings at different times. Times have change

thefinancialexpress.com.bd

Readying youth for an AI-driven workforce

The world has undergone many transformations and the lives of people inside it have transformed many times. From the Dark Ages to the Age of Enlightenment to the Age of Science and Technology, how people lived and earned a living has acquired different meanings at different times. Times have changed needs, needs have changed livelihoods, and livelihoods have changed lives. Imagine the postmen of yesteryears who travelled on foot to deliver letters from one place to another. Remember how much effort went into letter writing, from finding pen and paper to collecting stamps to waiting for days to getting letters posted and delivered. That entire exercise can be completed within minutes by email or instant messaging. The list of professions that have long vanished into the layers of time with the advancement of technology is long. However, the march of technology is relentless, and the artificial intelligence (AI) and robotics are now the latest phenomenon transforming the nature of work more profoundly than ever.

The impact of this latest technological revolution is already visible across almost every sector of the economy. From generative AI tools such as ChatGPT, Gemini and Claude to industrial robots, autonomous vehicles and AI-powered healthcare systems, intelligent technologies are reshaping how businesses operate and how people perform their daily tasks. Tasks that once required hours of human effort can now be completed in minutes. These changes, however, have their positive side and negative side. While more work can be done within a short period of time using less manpower, how these changes will impact the labour market is a matter of concern for many. Some of the predictions indeed paint a frightening picture.

For example, a recent study by the Center for Policy Dialogue (CPD) warns that the labour-intensive readymade garment (RMG) industry will see a massive reduction in its workforce due to the rapid advancement of automation and technology-based production systems. According to the study, without timely policy support for upskilling and reskilling, automation could displace 1.2 million jobs in the RMG sector by 2041. Among this, women workers will be hit the hardest, as the study finds that nearly 60 per cent of the jobs currently held by female workers could disappear over the next one or two decades as factories increasingly adopt automation and advanced technologies to remain competitive in the global market.

The projections of some international organizations are similarly striking. Goldman Sachs Research estimates that automation could replace around 300 million jobs globally. The International Monetary Fund (IMF) also estimates that AI will impact nearly 60 per cent of jobs in advanced economies and about 40 per cent of jobs worldwide, replacing some and complementing others.

Experts however are of the view that while technological advancement may eliminate certain jobs and services, it also creates new ones. Moreover, technological progress expands economic growth rather than shrinking it. The Industrial Revolution, for instance, displaced traditional handloom weaving and many artisanal occupations, but it also laid the foundation for the modern manufacturing economy and created millions of new jobs in factories and related industries. Likewise, the advent of computers rendered typists and many clerical roles largely obsolete, but it gave birth to the software industry, the internet economy and countless digital professions.

AI is likely to follow a similar path. Businesses will increasingly deploy AI to perform repetitive, routine, and data-intensive tasks. As a result, employment opportunities in data entry, basic accounting, customer support and call centres and other clerical roles may gradually decline as many of their routine tasks can be automated. It will allow companies to free up workers to focus on responsibilities that require judgement, creativity, critical thinking, and human interaction. Machine may complete vast amount of data with remarkable speed and accuracy, but it lacks many of the qualities that define human intelligence. It cannot show empathy, moral judgement, or emotional intelligence. Nor can it provide leadership. So AI is best suited to become a powerful tool to complement human capabilities rather than being a replacement for them.

At the same time, the rise of AI is creating occupations that were virtually unheard of just a decade ago. Professions in data science, machine learning training, cybersecurity, cloud computing, robotics, digital healthcare, semiconductor manufacturing, AI engineers and prompt engineers are expected to be in high demand in the coming years. In the future labour market, the most valuable asset will not simply be a university degree, but the ability to adapt to technological change, think critically and creatively, solve complex problems and embrace lifelong learning.

This, however, does not mean that the authorities can afford to take their eyes off the risk of job displacement in the garment industry and other labour-intensive sectors. Many routine tasks in these industries are likely to be automated gradually in the upcoming years. In the garment sector, for example, routine tasks such as fabric cutting, digital pattern making, quality inspection, and warehouse management are increasingly being performed using AI-powered systems and robotics. In fact, to remain competitive in an increasingly competitive global market, automation and higher value addition are not a luxury, but a necessity.

This is where proactive public policy becomes essential. The government must adopt a comprehensive strategy, supported by both fiscal and monetary measures, to help workers adapt to technological change. Large-scale investment in reskilling programmes that equip workers with new competencies, alongside continuous upskilling initiatives to enhance existing skills, should be prioritised. Without such measures, the benefits of AI-driven productivity could come at the cost of large-scale unemployment crisis and inequality.

At the same time, preparing the youth for the future jobs should be a national priority. Universities can no longer rely on conventional curricula that cannot keep pace with rapid technological change. Instead, they should strengthen industry-academia collaboration, modernise their curricula, and place greater emphasis on digital literacy, AI, data analytics, critical thinking, problem-solving, and other future-oriented skills. Technical and vocational education and training (TVET) institutions must also be upgraded to equip students and workers with practical, industry-relevant competencies.

AI presents both opportunities and challenges. How effectively a country harnesses its potential while minimising its disruptive effects will depend largely on the quality of its human capital. The more skilled, adaptable, and innovative the workforce, the better equipped the nation will be to turn AI into a driver of productivity and economic growth.​