Proceedings of the International Conference on Socio Legal Intricacies of Artificial Intelligence (ICSLIAI 2026)

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Liability Framework for AI Errors In CBDC: A Comparative Socio-Legal Analysis

Authors
Dinesh Vishwanath Iyer1, Sarika J. Sagar2, *
1Department of Law, Vishwakarma University, Pune, Maharashtra, India
2Department of Law, Vishwakarma University, Pune, Maharashtra, India
*Corresponding author. Email: sarika.sagar@vupune.ac.in
Corresponding Author
Sarika J. Sagar
Available Online 5 March 2026.
DOI
10.2991/978-2-38476-547-8_8How to use a DOI?
Keywords
Artificial Intelligence (AI); Central Bank Digital Currency (CBDC); Liability Frameworks; Socio-Legal Analysis; Accountability; Financial Inclusion; Comparative Law
Abstract

Most of the nation’s now engage in developing their own versions of Central Bank Digital Currencies (CBDCs). The integration of Artificial Intelligence (AI) with CBDC helps in detection, validation execution. But it has its inherent biases. The researchers offer a comparative socio-legal perspective on fixing liability that arises out of this. AI CBC pilot programs across 4 jurisdictions have been analysed, i.e., India’s e-Rupee, the EU’s Digital Euro, China’s e-CNY, and the US’ Federal Reserve initiatives.

Doctrinal method of review of major laws like the EU AI Act, India’s IT Act, and various reports. A comparative analysis of legislation and its approaches, including fault-based models, strict liability, and state-led systems, has been conducted. For example, Chinese is more like a central system wherein AI is in a controlled setup. Despite this almost 15% to 20% problem persists in how consumers get remedies. Still, the question remains who takes the blame. A combined liability system with regular AI checks seems to be the answer as of now. Global standardisation needs to be fair, open, and policy-based for the CBDC-AI to work.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Socio Legal Intricacies of Artificial Intelligence (ICSLIAI 2026)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
5 March 2026
ISBN
978-2-38476-547-8
ISSN
2352-5398
DOI
10.2991/978-2-38476-547-8_8How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Dinesh Vishwanath Iyer
AU  - Sarika J. Sagar
PY  - 2026
DA  - 2026/03/05
TI  - Liability Framework for AI Errors In CBDC: A Comparative Socio-Legal Analysis
BT  - Proceedings of the International Conference on Socio Legal Intricacies of Artificial Intelligence (ICSLIAI 2026)
PB  - Atlantis Press
SP  - 55
EP  - 64
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-547-8_8
DO  - 10.2991/978-2-38476-547-8_8
ID  - Iyer2026
ER  -