The Minister for Finance and Public Expenditure & Reform, Pascal Donohoe (TD) yesterday published a discussion paper yesterday (March 23) on virtual currencies and blockchain technology and announced the creation of an internal working group to monitor developments in the area.
Ireland already has a healthy, burgeoning network of blockchain start-ups and the space is set for further growth under the right conditions. The Blockchain Association of Ireland (BAI), founded in 2016, which has recently been assimilated into the Irish Computer Society (ICS), has been working to build understanding of the technology in Ireland and will now liaise with Irish businesses, Government and regulators to promote the industry. A host of new start-ups are stepping up to capitalise and build on the success of trail blazers such as Mingo.
Mingo, chaired by Fran Rooney and co-founded by Joe and Deirdre Arthur, utilises DLT to aggregate multiple social media accounts and offer users a platform for exchanging virtual currencies. Last year it raised over €650,000 in the first hour of its Initial Token Offering (ITO). A Mingo smartphone application already exists and has been downloaded more than 50,000 times in 93 countries.
On the publishing of the government’s paper Rooney said, ‘We welcome the publishing of this report and commend Minister Donohoe for his foresight in this regard. The world stands poised to create a new technology leap forward and it would be most beneficial if the Irish Government, The Department of Finance and The Central Bank all looked closely at the possibilities involved and prepare a strategy that will enable and empower Irish companies working in this area.
‘Given the potential fallout of Brexit, seizing a leading role in this area in terms of positive cryptocurrency regulation will also position Ireland in a very attractive light for global companies and investors.’
The government’s publication of the 36-page discussion paper marks a key moment for the technology in Ireland as it indicates that people at the highest level are aware of the transformative power of blockchain technology in the finance sector and beyond.
Within the discussion paper Minister Donohoe points to the huge opportunity associated with blockchain technology in Ireland.
Minister Donohoe said: “…blockchain… has the potential to be a catalyst for innovation in the financial services sector and elsewhere. One of Ireland’s strengths is its ability to innovate and adapt to emerging trends across finance and technology and I have spoken before about the importance of developing clusters in key growth areas as a way of nurturing Ireland’s knowledge economy.
“The Government’s IFS2020 vision is to be recognised as a global location of choice for specialist international financial services by building on our strengths in talent, technology, innovation and excellent client services, while focussing on capturing new opportunities in a changing marketplace and embracing the highest standards of governance. By engaging with virtual currencies and blockchain technology, Ireland, through the work undertaken by the Department of Finance, can be instrumental in creating a predictable and open blockchain ecosystem in Ireland and furthering that ambition,” he said.