Lithuania will become the first country in the euro zone to issue digital currencies. On July 2nd Lithuania began pre-sale of 24,000 digital currencies issued by the central bank, Reuters reported. The digital currency, called LBCoin, is based on blockchain technology and is part of a pilot project in the country to pilot state-backed digital currency and blockchain technology.
Originally published as: Lithuania to pre-sell digital currency issued by central bank next week to prevent Libra threat
LB Coin will go on sale on July 23,media cointelegraph reported. This means that LBCoin will be the first digital currency issued by a central bank in the euro zone.
Reuters reported that LB Coin will be sold for a price of 99 euros for six pieces. LBCoin can be exchanged directly with the central bank and the dedicated blockchain network. The Central Bank of Lithuania wants users to trade with others, establish a set of digital currencies, which can then be exchanged for a credit card-sized physical silver coin with a nominal value of 19.18 euros.
The current sharp drop in cash usage and the possibility of Facebook’s 2.5 billion users adopting libra, the digital currency it produces, have prompted central banks to study how to issue their own digital currencies.
Marius Jurgilas, deputy governor of Lithuania’s central bank, said: “No one in the central bank is serious about digital currencies until we are aware of the threat that others might occupy our space. “
“We need to provide society with what it needs,” Jurgilas said. “
Jurgilas believes LBCoin could be a state-of-the-art testing ground for different forms of CBDC before the central bank begins to change its thinking about digital currencies.
But Benoit Coeure, head of the Bank for International Settlements(BIS) Innovation Centre, said in June that the central bank should be cautious about introducing CBDCs to avoid a split in the financial and monetary systems, Reuters reported.
U.S. financial website thestreet recent data collated shows that so far, there are no countries officially issued the central bank digital currency, including China, Sweden, Thailand, Cambodia, South Korea, Ukraine and other countries have pilot programs, Canada, Venezuela is in the development period, the United States, Japan, Europe and other countries are still in the research stage, the rest of the countries have not yet said.
Among them, the European digital currency research process is accelerating, the European Central Bank is also actively exploring the central bank’s digital currency area.
On 12 December 2019, the ECB Board of Governors announced in Frankfurt that it had established a special committee of the Central Bank’s Digital Currency, which will accelerate the study of digital currencies, which is expected to reach conclusions by mid-2020. And Ms Lagarde has made clear the ECB’s position on the issuance of the central bank’s digital currency: the ECB should be a leader in the CBD C.
In January 2020, the Bank of England, the Swiss National Bank, the Swedish Central Bank, the Bank of Japan, the Bank of Canada and the European Central Bank and the Bank for International Settlements (BIS) set up a working group in January 2020 to conduct a joint study of the central bank’s digital currencies.
“While there is a lack of a specific ‘business case’ for CBDC (central bank digital currency), it will not prevent us from seriously exploring the best design of CBDC so that we can be fully prepared in case of need,” said European Central Bank board member Yves Mersch, according to Reuters on May 11. “