Bank of Lithuania Launches Blockchain-Based Collectors Token

The central bank of Lithuania, the Bank of Lithuania, has launched a blockchain-based digital collector’s token called LBCOIN. The token is the first digital coin issued by a central bank, according to the financial organization.

According to an announcement published by the Bank of Lithuania, LBCOIN consists of six digital tokens and one physical collector’s coin. The bank issued a total of 4,000 LBCOINs, which means there are 24,000 tokens and 4,000 collector’s coins up for grabs. The tokens are based on the NEM blockchain.

Commenting on the launch Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania, said the digital coin is an illustration of the development the financial industry has been making over the last few years, and added:

[LBCOIN] serves as a bridge that brings together classical numismatics and rapidly evolving financial technologies. I have no doubt that LBCOIN will strengthen Lithuania’s role as the regional fintech hub.

Officials added that digital money is inevitable in a digital economy, and the LBCOIN allows people in Lithuania and throughout the world to test new technologies in a safe way. To use LBCOIN, users will have to go through authentication procedures and open a digital wallet, so they can be able to swap the tokens with other collectors or transfer them to the public NEM network.

Marius Jurgilas, Member of the Board of the Bank of Lithuania, pointed out  that LBCOIN allows the central bank to “get the know‑how in issuing central bank digital currencies (CBDC), which in turn should benefit the central bank community and the euro area as a whole.”

Each LBCOIN features one of the 20 signatories of the country’s Act of Independence. Collectors who use LBCOINs can move them, store them at an LBCOIN e-shop, or transfer them to the NEM network. The physical collectors coin is said to look like a credit card an have a denomination of €19.18 ($22.25).

An LBCOIN is priced at 99 EUR ($114.8) and can be purchased at an e-shop. On the first six days of their sale each person will only be able to buy one LBCOIN, with the limit being lifted after the sixth day.

Featured image via Pixabay.