Editor's Note: This article comes fromInterchain Pulse (ID: HiveEcon), reprinted by Odaily with authorization.
, reprinted by Odaily with authorization.
It is not the United Kingdom, which began researching the central bank's digital currency in 2015, nor Sweden, which piloted digital currency in February this year, nor Estonia, which advocates a digital country. Lithuania seems to "run away". But everyone who understands the country’s blockchain strategy knows that this is actually part of the Lithuanian state-backed digital currency and blockchain technology project. However, China already has a financial technology company, "Probe", which has taken root in Lithuania and has begun to test the blockchain business in the EU.
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Blockchain environment in Lithuania
Unlike the "e-krona" of the Swedish central bank and the DCEP of the central bank of China, which have entered a small-scale pilot, the LBCoin that the Lithuanian central bank will issue on July 23 does not limit its scope of issuance and can be purchased by individuals. In this respect, LBCoin is groundbreaking.
But LBCoin is still experimental. According to the information disclosed by the Central Bank of Lithuania, LBCOIN is the world's first blockchain-based digital collection currency, with 20 signature nodes, including six groups including priests, presidents, diplomats, industrialists, scholars, and municipal civil servants.
LBCoin consists of a set of six randomly selected digital tokens that can be exchanged for physical collectible coins, and the price of a set of 6 is 99 euros. The Bank of Lithuania will issue 4,000 LBCoins, namely 24,000 (4,000*6) digital tokens and 4,000 physical collection silver coins.
6 different types of tokens will be convertible into 1 commemorative coin within 24 months after issuance. It is also worth noting that after 30 months, there will be no more digital tokens on the market. During this period, all tokens will be exchanged for physical commemorative tokens, and the electronic store will also be closed.
And the Central Bank of Lithuania has made it clear that LBCoin is not a legal tender and can only be exchanged for physical collector coins, or exchanged with other collectors, or sent as a gift or transferred to a public NEM wallet. Physical silver coins of non-traditional denominations, and their use as a means of payment is discouraged.
Judging from the above statement, Lithuania has conducted a central bank digital currency experiment with commemorative coins. — but this is the closest the euro zone has come to experimenting with a popular digital currency.
In addition, unlike China's DCEP, which still has central banks or commercial banks responsible for clearing and settlement, Lithuania's LBCoin uses blockchain for bookkeeping, and the bookkeeping nodes it designs are also very groundbreaking.
In fact, it is not surprising that Lithuania can take the lead in "digital currency". The country, especially its central bank, has been promoting the compliant development of the blockchain. In 2017, Lithuania established Europe's first blockchain center in its capital, Vilnius.
In January 2018, the Lithuanian Central Bank Regulatory Sandbox (LBChain) program announced that the platform aims to facilitate innovative practices for global financial technology companies.
In May 2020, the first batch of projects in the Lithuanian Central Bank Regulatory Sandbox (LBChain) graduated. At the same time, the Lithuanian Central Bank announced the development of an "LTChain" (Lithuanian Chain) in the future. In LTChain, the bank will partner with other public institutions to attract start-ups in non-financial sectors such as energy, healthcare and transportation.
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Already Chinese companies have taken the lead
In the European Union, Lithuania has become a leading country in the blockchain industry, especially its open blockchain-based digital asset financing, which can bring lower-cost and more efficient financial support to global companies.
In the regulatory sandbox graduation project released by the Central Bank of Lithuania in May 2020, there is an STO exchange led by a Chinese team—the Probe Exchange, which implements the STO policy of the Central Bank of Lithuania.
At the graduation roadshow on May 26, the Central Bank of Lithuania evaluated the significance of Probe Exchange’s financial technology practice to STO, especially in terms of opening up the Asian and European markets.
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(Marius Jurgilas, deputy governor of the Central Bank of Lithuania and He Cong, founder of Probe)
Different from the common cryptocurrency exchanges in the market, Probe Exchange is a compliant cross-border cross-border digital securities issuance and trading platform, holds an EU compliant financial license, and is technically regulated by regulatory agencies.
The transactions of the exchange run on the Fabric network of IBM Hyperledger, and all interested stakeholders can join as a node. This means that the entire token issuance process can be regulated and is open and transparent. Users or investors can receive EURT, a stable currency in euros, by simply depositing legal currency into the system, and then they can use EURT to buy and sell tokens on the probe. Various security tokens.
Most importantly, due to the use of hyperledger architecture, which is a blockchain-based platform, the exchange invites regulators or government representatives to transparently monitor the compliance of the entire process.
According to Lithuania's "Guidelines for the Issuance of Security Tokens", practical tokens such as Bitcoin and Ethereum will not be traded on the Probe Exchange, and only real digital asset securitization tokens will be traded.
