Sharon Keogan (Independent) | Oireachtas source

It is interesting that this morning the other House is debating the Credit Union (Amendment) Bill 2021. I am seeking a debate in this House with the Minister for Finance on the future of banking. This summer, the Governing Council of the European Central Bank decided to launch an investigation phase of the digital euro project. Our Minister for Finance, Deputy Donohoe, was there in his role as the President of the Eurogroup and he expressed his full support for the project. As cryptocurrencies increase steadily in number and popularity, their potential to both improve international trade and to be used as payment looms ever larger in the eyes of the international community. The European Central Bank is investigation into the digital euro is in the interest of ensuring its continued grip on monetary transmission. The ECB needs its transmission channels to carry out its primary task of price stability and cannot conduct monetary policy if the euro disappears from the eurozone. While this is a welcome move in the right direction, there is no reason Ireland should be idle as it awaits a response to cryptocurrencies at a European level. Other countries are not sitting on their hands when it comes to laying the groundwork for early adoption.

On Monday, the US Government released a long awaited set of recommendations on how regulators and lawmakers should treat stablecoins and digital coins, the values of which are tied to fiat currencies such as the US dollar. The move has been welcomed by market participants and the US Acting Comptroller of the Currency, Michael J. Hsu, stated that while the salient risk may be mostly trading-related today, tomorrow the risks will be much broader than that and it behoves us as regulators to be strategic in how we approach this issue and think ahead. All countries will have to react to this at some point. Let us not be left behind in the dust by the way of stubborn caution. Let us instead be proactive in preparing for the inevitable global financial shift. We are always quick to talk about being a global world leader when it comes to climate activism. Why not the same appetite to be number one when it comes to something that may actually improve the lives of the Irish people? Another debate with the Minister for Finance, Deputy Donohoe, on the future of banking is needed in the new year.