Emer Higgins (Dublin Mid West, Fine Gael) | Oireachtas source

No, that is absolutely fine. I thank the ombudsman for her statement and for sharing her insights with us. One of my roles within Fine Gael is that I am the spokesperson on finance technology. That is because I worked in the area before I became a Deputy. I will focus my contribution and questions on cryptocurrencies. We all know about the prevalence of phishing scams, fraudulent phone calls and malicious text messages. They are discussed widely in the communities we represent. Innovations like online trading and cryptocurrency sales are not immune from fraud either. Trading in cryptocurrencies is quite a high-risk activity, which is why I believe that, at the very least, we need to have warnings on cryptocurrencies. Government absolutely supports the development of new financial technologies, as we should because that spurs innovation and digitalisation, but the warnings from the Central Bank, which the ombudsman has spoken about here, are clear. The Central Bank has highlighted the risks involved in buying or investing in virtual currencies. Cryptocurrencies are not guaranteed by the Central Bank. There are no guarantees and no safeguards such as those in respect of regulated financial services. As the ombudsman's case studies have shown, there is a chance of losing one's investment. As I have said, it is a high-risk activity and people need to know that before they consider investing. I was quite struck by what the ombudsman said with regard to it not being possible to use credit cards for that purpose. That is something I was not aware of but I was very pleased to hear it.

Anecdotally, I see a rise in interest among young people, particularly young men, in buying and investing in virtual currencies. While I would not like to quell anyone's interest in investing or financial pursuits in any way, it is very important that all investors fully understand the risks involved. Virtual currencies have no status as legal tender for payments in Ireland. They are not guaranteed or regulated by the Central Bank of Ireland. Unfortunately, as many of the people who have come to the ombudsman have found, this can lead to losing one's investment or being the victim of fraud. The ombudsman's case studies are really important in showcasing this issue. Tom lost €60,000, Paul and Philippa lost €20,000 each and Noah lost almost €30,000. These are big-figure sums and we do not know the personal circumstances of these people who lost all this money. We do not know the impact that loss had on their household budgets or on their mental health.

Since 23 April last year, providers of certain services relating to virtual assets have had to meet anti-money laundering obligations and obligations in respect of countering financial terrorism. Virtual currency providers established here in Ireland are required to register with the Central Bank. It is important to say we should not lose sight of the fact that sanctions against Russia are changing this landscape even further day by day. The Competition and Consumer Protection Commission updated its advice on purchasing and investing in digital currencies and cryptocurrencies last year. While steps are being taken to make people aware of the risks associated with cryptocurrencies, I am honestly not sure they are enough. We need a sustained information campaign and visible warnings on all advertisements for virtual currencies. That includes online advertisements on social media. Does the ombudsman think that would be helpful? Would it be practical and enforceable? Does she have any other advice as to what the Government or the Central Bank should be doing to tackle this?

Before I give her the opportunity to respond, I will commend the ombudsman and her team on all they are doing to connect and engage online. All of the investment in videos, the online complaints mechanism, the online presence and social media is positive and progressive. The fact that three out of every four complaints are now being made online shows her strategy is working, especially when combined with the continuing outreach and communication with people who are not IT literate, about whom the ombudsman has spoken. That is a very comprehensive and holistic campaign and strategy for engaging with people. Well done on that.