The Bank of Lithuania Released a Cryptocurrency, But Itâ€™s for Collector
Lithuaniaâ€™s central bank has issued a NEM blockchain-based collector token in homage to the countryâ€™s Act of Independence of 1918.
The Bank of Lithuania has released a digital, blockchain-based collector coin dedicated to the countryâ€™s Act of Independence of 1918 and its 20 signatories.
Claiming a world first, the central bank says the digital coin represents â€œa bridge that brings together classical numismatics and rapidly evolving financial technologies.â€�Â
Issued on July 23, the new LBCOIN is intended both as a national symbol and as a signal of the bankâ€™s strategic choice to drive innovation in the field of finance and payments.
â€œDigital money is inevitableâ€�
Marius Jurgilas, a member of the board of the Bank of Lithuania, gave a comprehensive overview of the projectâ€™s goals, stating that:
â€œDigital money is inevitable in the digital economy. Today, LBCOIN is what allows people in Lithuania and around the globe to test new technologies in a safe environment, e.g. go through all authentication procedures remotely, open an e-wallet, swap digital tokens with other collectors or transfer them to the public NEM network.â€�
Jurgillas added that for the bank, issuance of the coin â€œallows us to get the knowâ€‘how in issuing central bank digital currencies, which in turn should benefit the central bank community and the euro area as a whole.â€�Â
The LBCOIN issuance consists of six digital tokens and one physical collector coin. 4,000 LBCOINs have been issued in total â€” 24,000 digital tokens and 4,000 silver collector coins.
The physical silver collector coins bear a denomination of 19.18 euros, in homage to the year of the 1918 Act of Independence. Minted at the Lithuania Mint, their size and form resembles a credit card and they feature various symbolic details, such as the national anthem inscribed in binary code. It also incorporates a QR code linked to the LBCOIN e-shop.Â
Each digital token features one of the Actâ€™s 20 signatories and belongs to one of six signatory categories â€” priests, presidents, diplomats, industrialists, academics and municipal servants.
Once a collector purchases an LBCOIN, priced at 99 euros, they receive six randomly selected digital tokens from the issuance.Â
These can either be exchanged for a physical collector coin, stored at the LBCOIN e-shop, sent as a gift, swapped online or transferred to an NEM public blockchain network using an NEM wallet.
Temporarily, purchases will be limited to one per person for a period of six days, after which they will be unlimited.
At the end of May, the bankâ€™s blockchain-based sandbox, LBChain project, completed its third and final stage. The LBChain network is set to be released in the fourth quarter of 2020.
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