Ireland bars crypto from $203B state savings scheme
Ireland has excluded cryptocurrencies from a proposed state savings scheme designed to attract about $203 billion in deposits.
The Department of Finance’s draft design for a state savings product bars digital assets from the list of eligible investments. The scheme would accept deposits from households and businesses and place funds in government-backed or regulated short-term instruments.
The draft explicitly excludes cryptocurrencies, citing price volatility, limited consumer protections and the current regulatory framework that treats many tokens differently from bank deposits and securities. It requires assets held in the scheme to be readily valued, liquid and subject to established oversight.
The draft states the rules aim to meet prudential and anti-money laundering standards and notes cryptocurrencies generally do not meet its conditions on valuation, liquidity and oversight.
The government estimates the scheme could attract about $203 billion in deposits and intends the product to offer a state-backed option for short-term household and corporate savings alongside private bank deposits.
Implementation will require primary legislation and coordination with the Central Bank of Ireland and European regulators to ensure compliance with EU financial rules. The Department of Finance plans to publish further technical details and to consult banks, consumer groups and market participants before finalising statutory provisions and operational arrangements.
Banks and consumer advocates have been involved in design discussions covering deposit guarantees, how scheme funds would be invested and the operational mechanics for transfers into and out of the product. The draft includes safeguards intended to limit disruption to the banking system and to preserve access to credit for households and businesses.
The draft notes that state savings programmes in other European countries typically offer regulated accounts and securities and states the exclusion of crypto aligns the new product with those models. The document also says the decision does not preclude future changes if regulatory standards for digital assets evolve.
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