Central Bank of Ireland today published a Discussion Paper examining the potential role of Distributed Ledger Technology (DLT) and tokenisation in the financial system (PDF 1.37MB).

Deputy Governor Vasileios Madouros, commenting on the publication, 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.

‘Technology – in and of itself – will not be sufficient to deliver the potential benefits for users of financial services. That requires establishing the right enabling environment and ensuring that central bank money remains at the heart of a future tokenised financial system,’ Madouros added.

‘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. Through this Discussion Paper, we want to engage with stakeholders on a range of topics spanning tokenisation in markets, investment funds, money and payments.

‘I encourage all stakeholders – market participants, technology providers, academics, and fellow policymakers-to share their insights. That engagement will help inform our approach and ensure that Ireland and the EU can leverage the benefits of tokenisation, while safeguarding a resilient financial system, that operates in the best interests of consumers and wider economy.’

Our Discussion Paper aims to:

Increase our understanding of DLT and its potential to transform the underlying infrastructure of finance and create new innovative financial services

Assess the opportunities, challenges, enablers (including legal and regulatory clarity, operational resilience and scalability, and interoperability) and risks arising from these technological innovations

Examine how DLT and tokenisation interact and intersect with existing financial infrastructures, intermediaries and product offerings

Ensure that the use of DLT and tokenisation in financial services deliver the benefits of efficiency, transparency, and accessibility for the welfare of society as a whole.

ENDS

Notes to Editors

Submissions on the Discussion Paper are invited by 5 June 2026.

The Central Bank intends to publish a feedback statement following the consultation period.