The central bank of Lithuania is launching a regulatory and technological sandbox platform called LBChain. This move will facilitate testing for foreign and domestic companies to test and develop blockchain solutions.
The Value of LBChain for the Fintech Community
The rise of blockchain technology is turning out to be a major buzz word for the financial sector, as more and more governments look to explore the innovation. In the same regard, Marium Jurgilas, member of the Board of the Bank of Lithuania stated,
“Blockchain technology has tremendous potential for innovations that will benefit consumers in both the financial and public sectors. Giving businesses room for the regulated development of this technology will make our country increasingly attractive for investment and help us attract the best talent, as well as make Lithuania a home for innovations.”
During his discussion, Mr. Jurgilas anticipates that blockchain technology would be a feasible solution for the industry that indeed demands high data transmission security and credibility. He further pointed out use cases for financial operations and electronic voting.
However, the technical platform and consultations will only be available to LBChain participants. Thus, only the innovative firms that meet the regulatory threshold can enjoy the platform’s proposed facilities.
The LBChain platform will go live in early 2019 following confirmation of the project’s co-financing using EU funds.
Mr. Jurgilas also believes that this new platform will surely bring improvements to the development of Fintech firms in Lithuania. LBChain also provides innovation-friendly regulation and may attract foreign bodies for this exact reason.
More to the point, LBChain will assist banks to stay updated with the technology trends that are creating an impact on fintech businesses, he concluded.
In late 2017, Estonia, Latvia, and Lithuania entered into a MoU to develop capital markets in association with blockchain technology. During the same period, Estonia proposed the launching of a state-backed cryptocurrency estcoin with the help of Ethereum founder Vitalik Buterin.