Central Bank of Lithuania Issues World's First Central Bank Digital Currency
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July 23, 2020

The Central Bank of Lithuania has just issued the digital collector coin LBCOIN, becoming this way the first issuer of a CBDC in the world.

According to the country's central bank, it has issued 4,000 coins, each of which is backed by six digital tokens valued at €99 that can be exchanged for a silver coin at a price of €19.18. The launch of the digital coin is dedicated to the anniversary of the adoption of the Lithuanian Act of Independence.

The LBCOIN is based on the NEM blockchain. Marius Jurgilas, member of the Board of the Bank of Lithuania, said:

"The 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. At the same time, this also allows us 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."

The launch of the LBCOIN is the result of the country's central bank's desire to introduce financial innovations, according to Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania. The digital currency is a bridge between traditional finance and fintech. He added that the LBCOIN will strengthen Lithuania's role as a regional fintech hub.

The Bank of Lithuania announced its plans to issue a CBDC last year.

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