How central banks are navigating digital transformation

Change in financial markets is accelerating, driven by innovation, interconnectedness and asset class expansion. Central banks worldwide – as essential institutions to the stewardship and functioning of economies and markets – are confronting this pivotal inflection point and assessing the impact to their operations.

The convergence of cloud, artificial intelligence and digital assets is not just transforming infrastructure – it’s redefining how these institutions deliver on their mandates while future-proofing their core competencies in reserve management, risk management and monetary operations. These themes were explored in depth during Nasdaq’s recent webinar with Central Banking, Future-proofing reserve management in a rapidly evolving financial landscape.

Strategic infrastructure

From fragmentation to integration

The webinar opened with a clear call to action: central banks must move beyond fragmented legacy systems and embrace unified platforms that support real-time operations and cross-functional agility. The complexity of today’s environment – marked by inflation, interest rate uncertainty and geopolitical tension – demands resilient infrastructure and a strategic approach to change.

This isn’t simply about upgrading systems. It’s about reimagining how central banks define and deliver their mission in a digital-first world. As Sophie Marnhier-Foy noted, the mandate for central banks to operate “super-mission-critical systems” requires not just technological modernisation but a cultural shift in how change is perceived and managed.

Transforming the way central banks look at change [is crucial] – so that it’s not perceived solely as a risk but also as an opportunity to optimise, to streamline and to improve the way they safeguard monetary operations and reserves.

Sophie Marnhier-Foy, Nasdaq

Bjørn Østergaard echoed this sentiment, noting that, while many technologies are still in exploratory phases, the imperative to modernise is clear, and central banks need to take notice.

Takeaway one

Cloud strategy as a catalyst for resilience

Cloud adoption continues to gain momentum with central banking institutions. Østergaard shared the National Bank of Denmark’s journey, which began with a cloud-first strategy in 2019 and has since evolved into a service-oriented model focused on business outcomes.

However, he was keen to note that, while consumption of cloud-enabled services can help Denmark’s central bank maintain a sharp focus on cyber security and disaster recovery, cloud is not a panacea and requires dedicated operational and organisational buy-in beyond the technical considerations. He also emphasised the importance of anchoring cloud strategy in top-level leadership, noting that the central bank’s transition was initiated by the senior management and that success depends on clear governance and realistic expectations.

This shift reflects a broader trend: central banks are increasingly working with partners to gain infrastructure that allows internal teams to concentrate on policy execution and strategic oversight.

It’s important not to consider cloud – or any other service – as a magic solution where all your difficulties disappear. You still need people and you need to manage providers actively.

Bjørn Østergaard, National Bank of Denmark

Takeaway two

AI-driven insights and operational optimisation

AI is emerging as a powerful enabler of reserve management transformation. Mourad Gueye illustrated how advanced analytics can help central banks optimise portfolio performance by identifying investable capital and forecasting operational needs.

Drawing a parallel with personal finance, Gueye explained how AI can help sort institutional funds into tranches – working capital, short-term deposits and long-term investments – based on predictive modelling of expenses and market conditions.

Østergaard added that AI is already being used across the central bank in practical ways, from summarising meetings to drafting emails. As with cloud services, he emphasised the importance of human accountability and governance in technology adoption. He also encouraged a mindset of experimentation, noting that central banks can learn from peers and strategic technology partners.

AI maximises the available cash for investment, and therefore you invest that money – [generating] more income and more revenues.

Mourad Gueye, Nasdaq

Takeaway three

Digital assets and the evolution of monetary operations

The rise of digital assets, including tokenised bonds, stablecoins and central bank digital currencies (CBDCs) is starting to reshape monetary policy. The panel explored how digital assets are moving from pilot projects to production environments, with implications for collateral management, liquidity provisioning and cross-border interoperability.

Marnhier-Foy emphasised the importance of understanding the taxonomy of digital assets and how each fits into the broader monetary ecosystem. Gueye added that successful digital monetary operations require both sides of the equation: a widely adopted CBDC and a corresponding digital bond or asset.

Takeaway four

Collaboration and community-led innovation

Transformation is not a solo endeavour. The panel emphasised the importance of community forums, benchmarking and cross-border dialogue in accelerating progress. Marnhier-Foy cited recent surveys that showed, while a majority of central banks intend to adopt digital assets and AI, very few have activated those plans.

This gap underscores the need for structured collaboration and milestone-driven implementation. Engagement forums at events, such as at Sibos 2025 in Frankfurt, allow central banks to share best practices, measure progress and define common goals.

Addressing challenges and the path forward

AI is new to all of us. So try it out, see what works for you and learn from others.

Bjørn Østergaard, National Bank of Denmark

Addressing challenges now will help central banks capitalise. Cultural resistance, fragmented regulatory environments and skills gaps continue to slow adoption. The panel called for continued investment in education, change management and ecosystem partnerships.

Østergaard emphasised that transformation is not just about technology but also about people. The skill sets required today are different from those of five or 10 years ago, and central banks must adapt accordingly.

Ecosystem-wide collaboration and change is needed to support modern reserve management operations and modern markets. To begin this process, central banks can prioritise the following themes:

• Strategic vision: clear goals and phased implementation plans.
• Cloud-native infrastructure: scalable, secure platforms that support mission-critical operations.
• AI integration: predictive analytics and automation with human oversight.
• Digital asset readiness: operational models for tokenised bonds and collateral, CBDCs long-term.
• Community collaboration: shared best practices and innovation forums. 

What is really important is that we are at this point where central banks want to move forward – they want to leverage modernisation and innovation to achieve an environment that is more streamlined, automated and resilient.

Sophie Marnhier-Foy, Nasdaq

Nasdaq is committed to supporting central banks on their modernisation journeys, providing technology, insights and partnership models that enable transformation at scale.

As markets evolve, central banks are poised to have a pivotal say in the shape of tomorrow’s financial landscape. By embracing change, they can drive outcomes in reserve management, risk management and monetary policy operations that enable them to be more agile, efficient and future-forward. Yet, as panellists mentioned, successful transformation hinges not only on access to technology but also strategic resources, industry expertise and shared knowledge.

Nasdaq Calypso for central banks supports institutions on both sides. With a single automated platform, central banks can support operations across a range of asset classes with robust risk, treasury and collateral management functions, helping central banks navigate dynamic market conditions with agility and confidence. The annual Nasdaq Calypso Central Bank User Forum also brings Nasdaq’s customers together in a unique setting to exchange experiences, discuss global themes with peers and learn about the Nasdaq Calypso road map.

 

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