The Central Bank of Lithuania will be the first bank in the world to issue a digital numismatic coin this year. The coin will be named ‘LBCoin’ and will be based on the blockchain technology. By launching ‘LBCoin’ Lithuanian Central Bank aims to test cryptocurrency and distributed ledger technologies.
According to the bank’s board member Marius Jurgilas:
“It will not be a cryptocurrency but a digital numismatic coin. It’s a commemorative coin, and the issue will be limited. It will be legal tender, just as all commemorative coins issued by the Bank of Lithuania, but nobody uses them as legal tender as their market value is higher,”
he said on Friday to Baltic News Service. Then added:
“We want it to have a game element. We want to cheer up numismatics which is a dying area. Probably, a very small number of young people are now interested in collecting, but this is what central banks do, and we think of ways to remain in this changing environment.”
Endorses Virtual Currencies
During a fintech event in Vilnius on February 1, 2019, Jurgilas has underlined that more and more central banks are getting involved in digital currency projects:
“Several years ago, nobody was talking about central banks’ virtual currencies. And now surveys show 70% of central banks are working with this technology. A third of them say it will happen, but it’s unclear when.”
Marius expressed that the Bank of Lithuania is testing the cryptocurrency technology by launching ‘LBCoin’ and confirmed that it will happen this year.
Invites FinTech companies to Develop a Product on Blockchain
What’s more interesting, the Bank of Lithuania invites financial technology (FinTech) companies to participate in the ‘LBChain’ project, and together with its leading blockchain experts to develop or test a product based on DLT. The project will be presented on February 6 2019, at the event “Drive over with LBChain”, which will take place at Blockchain Center Vilnius.
‘LBChain’ is the world’s first pilot technology platform developed by the financial market regulator, based on blockchain technology, combining regulatory and technology advice.
It is designed to help Lithuanian and international finance and FinTech companies and start-ups to acquire new knowledge, research, test and adapt blockchain technology-based services, and offer innovative innovations to consumers.