Irish Central Bank Chief: Blockchain is One of 'The Largest Policy Challenges'

New technologies like blockchain represent a major policy challenge, according to the head of Ireland's central bank.

Jul 27, 2017 at 3:05 p.m. UTC
Updated Sep 13, 2021 at 6:46 a.m. UTC

New technologies like blockchain represent a major policy challenge, according to the head of Ireland's central bank.

According to a newly-published transcript from a speech in late May, Philip Lane, governor of the Central Bank of Ireland, said that the central bank has moved to establish an internal working group focused on financial technology innovation. It's an approach that other central banks have taken as technologies like blockchain are poised to potentially enhance or replace some of their infrastructure.

But opportunities aside, the tech also presents issues, Lane said during an event hosted by the Banking and Payments Federation of Ireland.

He went on to say:

"...novel innovations in the markets sector, such as distributed ledger and crypto currencies, may present the largest policy challenges given their complexity and novelty. Finally, we note that many Fintech start-ups will have limited regulatory expertise and this may present policy challenges in communicating the scope and requirements of the authorisation regime and the role of the Central Bank."

Those perceived risks haven't stopped Ireland's private sector from testing the tech, however.

Last April, the Bank of Ireland – one of Ireland's "Big Four" banks – revealed that it was working on a trade reporting prototype in partnership with Deloitte, which itself has made Dublin a hub for its work with blockchain.

More recently, members in a major Irish fund managers group collaborated on a test of their own, similarly exploring the tech for use as a data reporting tool.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Sequoia's Guide to Surviving the 2022 Bear Market

Venture capitalists have gotten increasingly frantic over the last few months.

Venture capitalists have gotten increasingly frantic over the last few months.

CoinDesk - Unknown
2
CoinDesk - Unknown
NFT Art Museums Are a Good Idea

The metaverse turns galleries global, and helps fund the arts. This article is part of “Metaverse Week."

The metaverse turns galleries global, and helps fund the arts. This article is part of “Metaverse Week."

CoinDesk - Unknown
3
CoinDesk - Unknown
How the US Can Establish Itself as a Crypto Leader

Regulators have an opportunity to map out thoughtful, strategic policy on stablecoins and beyond.

Regulators have an opportunity to map out thoughtful, strategic policy on stablecoins and beyond.

CoinDesk - Unknown
4
CoinDesk - Unknown
No, the UK Is Not Going to Make USDC and USDT Legal Tender

For “legalize” read “regulate.”

For “legalize” read “regulate.”

CoinDesk - Unknown