Harnessing innovation benefits while managing risks – Central Bank of Ireland hosts fifth annual Financial Systems Conference
02 November 2026
Press Release
Central Bank of Ireland today (Monday 2 November) hosts its annual Financial System Conference (PDF 136.09KB) at Croke Park in Dublin. It brings together c. 500 delegates including international and domestic policy experts, senior figures from the financial services industry, and stakeholders from across the financial ecosystem.
Key themes will include navigating the changing geopolitical landscape and its implications for Ireland, strengthening European financial markets integration, Central Bank Digital Currencies, and building resilience in an era of digital transformation.
Speaking at the conference, Governor Gabriel Makhlouf outlined the rapid technological change underway in our economy and financial system and how the Central Bank is responding.
The Governor said artificial intelligence will impact growth, the labour market, productivity and national economic development; and highlighted financial stability risks, noting that stretched valuations driven by AI-related investments remain a concern.
He said: “The breadth in terms of AI capabilities and impact is clear, and potentially unprecedented. But so too is the pace at which its capabilities appear to be developing. As well as the rate at which deployment and adoption could take place.
“Stretched valuations remain a concern. In my view a market correction would not be a surprise and, indeed, corrections have been a feature of other historic infrastructure booms. Adding to the risks is the sheer size of the buildout, the scale of the debt financing driving these investments, and the circularity of some of the financing. This is a rapidly evolving landscape, reinforcing the need for vigilance, as well as economic and financial sector resilience.”
The Governor said the vast majority of firms regulated by the Central Bank are already using AI, from machine learning to generative and agentic AI. He said: “This year we set out our supervisory perspectives on its use by firms and our expectations around governance, strategic alignment and accountability. While these can be powerful tools, it is humans who deploy them and therefore humans who remain accountable and responsible.”
The Governor also spoke of the opportunities from AI, and announced that the theme of the Central Bank’s third Innovation Sandbox Programme will be Advancing AI for Consumer Good. Applications will open in January 2027, and participants will receive structured regulatory advice and support from specialists across the Central Bank.
On tokenisation and distributed ledger technology (DLT), Governor Makhlouf said the technology has the potential to reshape the monetary and financial system, including how financial markets operate and how money and securities move through the system.
Governor Makhlouf said: “Done well, tokenisation could lead to greater efficiency of existing financial services, as well as the emergence of new products and new ways of meeting the needs of households and businesses. But technological capability alone will not realise these opportunities. Rather the system needs to evolve to enable them.”
Earlier this year, the Central Bank published a Discussion Paper on DLT and tokenisation. Today, the Central Bank published its feedback statement, including priority areas in future work on tokenization.
This includes working through the Eurosystem on projects such as Pontes and Appia, as well as supporting efforts domestically and across the EU to advance legal regulatory clarity, including working with the Department of Finance to support delivery on the actions arising from the Ireland for Finance Strategy – Vision 2030.
The Central Bank will also further enhance its approach to innovation through the establishment of a tokenised access point through the Innovation Hub, and launching an innovation insights model, with a particular emphasis on tokenisation over the coming months.
Governor Makhlouf concluded by saying: “All of these priorities are in line with – and advance – our strategic shift towards better anticipating and responding to changes in the economy and financial system. Throughout all of this work we will remain grounded in our objectives. Our focus is on ensuring we understand the changing nature of the financial system, and that our frameworks are evolving alongside it, enabling the opportunities from innovation done well, while managing the risks.”
ENDS
Further information
Úna Quinn 086 067 4008 /una.quinn@centralbank.ie / media@centralbank.ie