The Bank of Lithuania has introduced a cryptocurrency, but only for collectors

The Bank of Lithuania launched a blockchain-based digital collector’s coin dedicated to the country’s Independence Act of 1918 and its 20 signatories.

The central bank gives a world first and says that the digital currency It represents “a bridge that combines classic numismatics and rapidly developing financial technologies”.

The new LBCOIN, released on July 23, is intended to be both a national symbol and a sign of the bank’s strategic decision to drive the company forward Finance and payments innovation.

“Digital money is inevitable”

The Bank of Lithuania has introduced a cryptocurrency, but only for collectors
The Bank of Lithuania has introduced a cryptocurrency, but only for collectors

Marius Jurgilas, board member of the Bank of Lithuania, gave an overview of the project objectives and stated the following:

“Digital money is inevitable in the digital economy. Today, LBCOIN enables people in Lithuania and around the world to test new technologies in a secure environment, that is, perform all authentication procedures remotely, open an electronic wallet, exchange digital tokens with other collectors, or transfer them to the public NEM- Network. “

Jurgillas added that for the bank the issue of the currency “enables us to obtain the necessary knowledge for the issuance of digital currencies from the central bank, which in turn should benefit the central bank community and the euro area as a whole. “

Symbolic capital

The LBCOIN issue consists of six digital tokens and one physical collector coin. A total of 4,000 LBCOINs were issued: 24,000 digital tokens and 4,000 silver coins.

The physical silver coins have a denomination of 19.18 euros in honor of the year of the 1918 Independence Act. Minted in the Lithuanian mint, its size and shape resemble a credit card and features various symbolic details, such as the national anthem written in binary code. It also contains a QR code linked to LBCOIN’s electronic business.

Each digital token represents one of the 20 signatories to the law and belongs to one of six signatory categories: priests, presidents, diplomats, industrialists, academics, and city officials.

As soon as a collector buys an LBCOIN for 99 euros, he receives six digital tokens randomly selected from the issue.

These can be exchanged for a physical coin, stored in the LBCOIN eStore, sent as a gift, exchanged online or transferred to a public NEM blockchain network using an NEM wallet.

Temporarily, Purchases are limited to one per person for a period of six days, after which they are unlimited.

In addition to accepting blockchain numismatics, the Bank of Lithuania also has ambitious long-term plans to develop its own blockchain platform for use outside of the financial services sector.

At the end of May, the bank’s blockchain-based regulatory environment, the LBChain project, completed its third and final phase. The LBChain network will be launched in the fourth quarter of 2020.

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