The Central Bank of Ireland has published a discussion paper to explore the benefits, enablers, sectoral considerations and risks associated with DLT and tokenisation.
The paper, ‘Distributed Ledger Technology (DLT) & Tokenisation in Financial Services’, analysed the future role of DLT and tokenisation applications within the Irish and European financial services ecosystem.
It assessed how DLT and tokenisation interact and intersect with existing financial infrastructures, intermediaries and product offerings, so the bank can ensure that the use of DLT and tokenisation in financial services delivers the benefits of efficiency, transparency and accessibility for the welfare of society as a whole.
Commenting on the publication, Vasileios Madouros, deputy governor, monetary and financial stability at CBI, said: “Distributed ledger technology and tokenisation have the potential to transform how financial services are delivered. We believe this technology, if enabled and deployed correctly, can change the financial system for the better, including by helping the EU deliver on its ambitions for a Savings and Investment Union.
“To deliver our mandate effectively into the future, we need to understand the possibilities stemming from tokenisation in finance and the implications of this innovation for the public policy outcomes we are seeking to achieve: monetary and financial stability, protecting consumers and investors, and upholding market integrity.”
