The central bank of Lithuania is all set to launch its blockchain-based digital collector coin LBCOIN later this month on July 23rd. The collectible coin consists of six digital token and one physical silver collector coin. Users who purchase LBCOIN would first receive a set of six digital tokens, which can then be exchanged for a physical silver collector coin. Each digital token features one of 20 signatories of Lithuania’s Act of Independence, and the physical silver collector coin resembles a credit card, with a denomination of €19.18; the year when 20 signatories signed the Act of Independence.
It is not a central bank-backed digital currency.
The central bank of Lithuania will issue a total of 4,000 LBCOINs, which includes 24,000 digital tokens and 4,000 physical collector coins. One LBCOIN is priced at 99 euros (~$110). LBCOIN is not a central bank-backed digital currency (CBDC), but it might help the bank explore CBDCs if the project succeeds. Marius Jurgilas, a member of the board of the Bank of Lithuania, said that LBCOIN is an important experiment in exploring the potential of central bank digital currencies (CBDC). The coin is built on the NEM public blockchain, and after purchase, it can be stored in a NEM wallet or a dedicated wallet on the LBCOIN’s online shop. LBCOIN can also be sent as a gift or swapped with other purchasers in the country.
Countries around the world continue to experiment with CBDCs.
Countries across the world are currently studying and experimenting with the idea of issuing a central bank-backed digital currency. Some countries are quite ahead in the field. China is all set to become the first major nation to have its centralized digital currency dubbed as DCEP (Digital Currency Electronic Payment). Earlier, the central bank of Canada posted a job for a CBDC project manager. Many countries, including the USA, are thinking of issuing a CBDC.