LBCoin is the first cryptocurrency issued by a European central bank. With data that Sweden will create its own state currency and the People’s Bank of China working on DC / EP, a plan to provide an alternative to the yuan, Lithuania was the first to issue cryptocurrency from its central bank, but with several limitations.
The project is described by the central bank itself as a financial experiment that will allow citizens understand how cryptocurrencies are stored, how they can be traded and what are some of its main advantages.
LBCoin, the first cryptocurrency issued by a European central bank
Bank of Lithuania announced its first experience with LBCoin, its own cryptocurrency, which will be available for purchase via packages of 99 euros to be changed. LBCoin is mainly based on 20 collectible tokens, dedicated to the 20 signatories of the Lithuanian Independence Act of 1918.
The blockchain-based LBCoin consists of six tokens based on the 20 signatories and one physical collector’s coin. When we buy an LBCoin we get the six digital tokens, which can be exchanged for another physical currency, stored in LBCoin’s own online store, sent to someone else as a gift, and redeemed with other collectors. . These physical silver coins have an additional value of 19.18 euros at exchange. However, this currency is not legal tender.
“Digital currency is a vivid illustration of what we have achieved in just a few years after our strategic decision to firmly embark on the path of financial innovation and payments. It serves as a bridge connecting classical numismatics and financial technologies. I am convinced that LBCOIN will strengthen Lithuania’s role as a regional center of financial technology, ”said Vitas Vasiliauskas, Chairman of the Board of Directors of Bank of Lithuania.
As this was an experiment, the Bank of Lithuania comments that interested buyers will have two months to purchase it, since the project will be closed later. In other words, no new LBcoin or physical coin will be issued for exchange after the experience has ended.
Although this is a limited project, it is an important step for this euro zone bank, be the first to venture into the creation of a cryptocurrency, despite its inclusion in an experimental and limited project.
More information | Bank of Lithuania
Source : Engadget