Assessing Competition in Irish Banking: The Account-Based Digital Euro and Its Institutional Implications

Romaniuk, Tetiana (2025) Assessing Competition in Irish Banking: The Account-Based Digital Euro and Its Institutional Implications. Undergraduate thesis, Dublin, National College of Ireland.

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Abstract

The introduction of central bank digital currencies (CBDCs) across the eurozone — accelerated by the ECB’s 2023–2024 preparatory phase — represents one of the most significant transformations of European monetary infrastructure in decades. This dissertation focuses on the Irish case, exploring how an account-based digital euro model might alter the competitive dynamics between the Central Bank and commercial banks. The study responds to growing concerns about deposit outflows, changes in lending models, and the evolving role of public monetary authorities.

It investigates the central research question: how might the ECB’s account-based digital euro reshape the relationship between the Central Bank of Ireland and commercial financial institutions? Adopting a qualitative methodology grounded in interpretivist philosophy, the study draws on semi-structured interviews with key financial stakeholders — including officials from the Central Bank of Ireland and executives from major commercial banks operating in Ireland.

Findings reveal a clear divergence in expectations. Regulatory voices express confidence in safeguards such as holding limits and non-remuneration, while commercial participants anticipate behavioural shifts, competitive disruption, and evolving funding strategies. The analysis suggests that the long-term significance of a retail CBDC lies less in direct competition and more in the gradual redesign of intermediation and monetary governance.

By placing the Irish case within the wider ECB agenda and global CBDC developments, this dissertation shows how state-issued digital currencies may gradually change the structure of national banking—not only through technology, but also by shifting financial roles, regulatory balance, and long-term strategic direction.

Item Type:	Thesis (Undergraduate)
Supervisors:	Name Email MacDonald, Robert UNSPECIFIED
Subjects:	H Social Sciences > HG Finance > Banking H Social Sciences > HG Finance > Money > Digital currency H Social Sciences > HG Finance > Money > Currency > Euro (Single European Currency) J Political Science > JN Political institutions (Europe) > Ireland
Divisions:	School of Business (- 2025) > BA (Honours) in Business Studies
Depositing User:	Ciara O'Brien
Date Deposited:	19 Mar 2026 15:22
Last Modified:	19 Mar 2026 15:22
URI:	https://norma.ncirl.ie/id/eprint/9188

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