Lithuania to Launch CBDC Based Digitial Token

The Bank of Lithuania, or BoL, will begin the pre-sale of CBDC based Digitial Token, called LBCOIN. Next week, 24,000 LBCOIN will be available for sale.

03 July, 2020, | AtoZ Markets – Facebook Libra White Paper release forces central banks to consider launching their own digital coins seriously. However, CBDC development is accelerating as the new coronavirus pandemic drives millions of people to switch to cashless payments.

Lithuania Will Launch CBDC Digitial Token Next Week 

Lithuania will issue its own digital token LBCOIN starting next week. It will be the first digital coin backed by the central bank in the euro area. LBCOIN is similar to Central Bank Digital Currency (CBDC) and is a traditional form of a digital currency issued and governed by a national central bank. Marius Jurgilas, deputy governor of BoL, said:

 “No one in the central bank community was thinking about digital currency seriously. But we realized that there is a legitimate threat that someone else will take our space. We need to provide society with what it wants.”

Next week, BoL will issue and sell about 24,000 Lithuanian digital tokens using blockchain technology. Lithuanian people will purchase the tokens in packs of six and valued at €99. It will also feature one of the portraits of prominent figures that signed for Lithuanian independence in 1918. Moreover, these individuals divided into six categories: priests, presidents, diplomats, entrepreneurs, scholars and city officials.

BoL expects users to trade digital token on the order of building a unique set, which can then be exchanged for a silver coin with a nominal worth of €19.18. LBCOIN holders can exchange tokens directly with the central bank and in private blockchain networks. Jurgilas also said:

 “The LBCOIN is very similar to central bank digital currency (CBDC ). At a time when central banks are beginning to change their thinking on digital currency, LBCOIN is probably the most advanced experimental playground to test different reincarnations of the CBDCs”.

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