The presale of digital collectible coins aims to spark interest in cryptocurrencies among young people while providing data for research and development.
The Bank of Lithuania is the latest central bank to explore the possibility of developing a central bank digital currency (CBDC) amid the pandemic.
However, the country appears to be taking a different approach. Rather than issuing a CBDC outright, Lithuania held a presale of digital collectible coins called LBCOIN on July 9.
The Bank of Lithuania (BoL) has been developing these tokens since March 2018, and this launch represents the final testing phase of the project.
In this experimental stage, 24,000 digital LBCOINS will be available in the presale. The tokens are sold in packs of six for €99 each.
Each token features the portrait of one of the 20 signatories of the country’s 1918 declaration of independence. These portraits are grouped into six categories: presidents, diplomats, industrialists, clergy, academics, and municipal officials.
Collectors can trade tokens and assemble specific sets, defined as one token from each of the six categories. In exchange for a complete set, they will receive a physical silver coin valued at approximately €20.
The BoL clarified that these tokens are not intended to be used as a means of payment. Their primary goal is to “engage more people, especially young people, in coin collecting,” while providing “valuable experience and knowledge in the field of digital coins.”
Several countries—including Japan, the United Arab Emirates, the United States, and China—have explored integrating blockchain technology into government and financial systems because blockchain can reduce certain risks while improving transparency and decentralization.
Alexandre Stachtchenko, co-founder of blockchain consultancy Blockchain Partner, says the technology is significant because it can also help address the shortcomings of the internet.
“Unlike an email, once you have sent a bitcoin, you can no longer access it,” he explained, referring to blockchain’s ability to transfer digital value securely.
Stachtchenko praised the Bank of Lithuania’s approach as “interesting” and “unassuming,” and he believes the initiative will stimulate discussion about cryptocurrencies and help people recognize the “elephant in the room.”
Other developments in the global cryptocurrency industry are prompting governments and institutions to reconsider the viability of maintaining traditional forms of money without creating digital alternatives alongside them.