Central Bank of Ireland Unveils AI and Tokenisation Strategies at Conference
Governor Gabriel Makhlouf discusses the Central Bank's focus on AI and tokenisation during the 2026 Financial System Conference in Dublin.
The Central Bank of Ireland held its fifth annual Financial System Conference on November 2, 2026, at Croke Park, attracting around 500 participants from the financial sector and policy domains. Key discussions revolved around geopolitical changes, European market integration, and advancements in digital technologies.
Addressing AI and Financial Stability
In his keynote speech, Governor Gabriel Makhlouf emphasized the dual nature of artificial intelligence (AI). While AI holds substantial promise for enhancing economic growth and productivity, it poses significant stability risks as well. Makhlouf pointed out the pressing concern of inflated market valuations tied to AI investments.
“The rapid advancement of AI and its widespread adoption is impressive,” he stated. “However, the concern lies in the potential market corrections that could arise, reminiscent of past infrastructure booms. The size of the investments and the financing structures involved further heighten these risks.”
New Initiatives: Innovation Sandbox for AI
To bolster consumer protection, the Central Bank announced the launch of its third Innovation Sandbox Programme, set to begin accepting applications in January 2027. This initiative, aimed at Advancing AI for Consumer Good, will offer participants structured regulatory advice and specialized support.
The Governor informed that many regulated firms are already utilizing various AI technologies, including machine learning and generative algorithms. The Central Bank aims to ensure that AI deployment is guided by robust governance and accountability measures.
Focus on Tokenisation and Distributed Ledger Technology
Shifting the discussion to tokenisation and distributed ledger technology (DLT), Makhlouf highlighted their transformative potential in financial systems. He remarked, “If executed effectively, tokenisation can streamline existing financial services and foster innovation in creating new financial products that cater to diverse market needs.”
Following a Discussion Paper released earlier in 2026, the Central Bank published feedback outlining priorities for its future work in this area. Major initiatives include involvement in Eurosystem projects such as Pontes and Appia, which aim to enhance regulatory clarity in Ireland and across the European Union.
The Central Bank's strategy also involves collaborative efforts with the Department of Finance under the Ireland for Finance Strategy – Vision 2030. Additionally, the establishment of a tokenised access point through the Innovation Hub is on the agenda, which is expected to catalyze growth in the tokenisation sector.
Looking Ahead
Governor Makhlouf summarized the Central Bank's commitment to evolving its approach to meet the challenges posed by technological advancements and market dynamics. He stated, “Our emphasis will remain on understanding the changing financial landscape and ensuring our regulatory frameworks adapt to foster innovation while effectively managing associated risks.”
For more in-depth insights, further details can be found in the Governor's full opening address and the feedback statement regarding DLT and tokenisation released by the Central Bank.