Skip to content

Lithuania will launch its CBDC for collection rather than trade this month

July 3, 2020

The Bank of Lithuania (BoL) will pre-sell its CBDC, nicknamed LBCOIN, on July 9tha central bank representative told Cointelegraph. The coin itself will be issued and sold on July 23.

While Technically speaking, LBCOIN is a CBDC based on the NEM blockchain and published by the Lithuanian central bankthe financial institution prefers to call it “the world’s first blockchain-based digital collector’s currency”.

Actually, LBCOINs are issued for collection purposes. This is part of the country’s more extensive research on blockchain and its capabilities.Pavel Lipnevič, LBCOIN project manager, told Cointelegraph.

Lithuania will launch its CBDC for collection rather than trade this monthLithuania will launch its CBDC for collection rather than trade this month

The BoL intends to sell 24,000 LBCOINs. They are delivered in six-packs at a price of EUR 99. Each sign bears a portrait of one of the 20 Lithuanian historical figures who signed the country’s declaration of independence in 1918. These people are divided into six categories: priests, presidents, diplomats, industrialists, academics and community officials.

After purchasing a token from any of the six categories, collectors can exchange it for a physical silver coin. In contrast to tokens, these silver coins are legal tender and amount to EUR 19.18, although “its use as a means of payment is not encouraged. “

This experience will help the board investigate the blockchain further, Lipnevič explained:

“LBCOIN helps to gain hands-on experience in issuing a (kind) of digital currency from the Central Bank for Retail (CBDC) in a real environment – in this case the niche of numismatics – that will act as a” playground ” controlled risk for the central bank and retail customers. “

According to Lipnevič “Among other things, valuable legal, technological and cybersecurity problems with a steep learning curve have already been found and solved“”

In a recent interview with Reuters Marius Jurgilas, deputy governor of the central bank, described LBCOIN as “the experimental playground to test various reincarnations of the CBDC that are likely to be more advanced”. At a time when financial institutions around the world are turning to digital currencies.

Presale is slated to begin on July 9th. A representative from the BoL explained to Cointelegraph:

“We call it pre-sale because buyers are asked to register in advance as it will take some time for the KYC procedures to complete, to prepare them on the day of sale and make them as easy as possible.”

Different implementations

Canada was one of the last countries to comment on the CBDC concept. In contrast to BoL Central bank officials argue that a digital Canadian dollar should mimic traditional banknotes in terms of availability and accessibility.

“A CBDC should be as accessible as cash”says the analytical note from the Bank of Canada.

Do not stop reading: