The Bank of Lithuania is set to launch a blockchain service in a bid to break out into the world of cryptocurrencies. This will give a chance to both local and international companies a chance to be part of this innovative project in the field of Fintech. The codename for the project is LBChain under the management of the Bank of Lithuania.
There’s no denying that blockchain technology is a revolutionary product whose impact is hard to ignore. That said, most banks have been against it and very few banks around the bank have appreciated the positive impact the technology has on the financial world. One of the board members of the Bank of Lithuania said that blockchain technology has a great potential for enabling innovations that are conducive for both the financial as well as the public sector.
By adopting this technology, the bank hopes to give room for this technology to advance in a regulated environment which will benefit the country. The project aims at creating more favorable investment opportunities in the country as well as attracts talent that will lead to further innovation in the country. There’s also hope that through embracing blockchain technology, innovation in the country will be accelerated.
Bank Of Lithuania’s Rationale
The bank believes that by launching this blockchain sandbox will help counter some of the challenges that are eminent in the economy and administrative sectors. For example, the board member noted that the use of Blockchain technology in areas that have high transmission of sensitive data that required security and authenticity was important.
Research into this technology is a big plus for the Lithuanians as well as foreigners especially those looking to invest in the country. Such a platform will provide a foundation on which further research can be done in regards to embracing this technology. Financial institutions will also have a basis through which they can adapt and embrace this technology.
LBChain Blockchain Tech Service Development Strategy
The development of this platform requires a lot of consultations regarding the applicable regulatory framework. The opportunity to look into this technology on behalf of the bank will be awarded to innovative companies that are conversant with blockchain matters. Selection will be done based on criteria that will help develop strategies and solution based applications built on this technology. It’s important for the government to put a great deal of attention to the selection process because the success of the platform will be influenced greatly by the developers.
The Bank of Lithuania hopes that the EU will help co-fund the project till completion. In the event that this happens successfully, then the platform will be ready for completion by 2019. The bank believes that the platform will contribute greatly to development of the Fintech sector of Lithuania. This is positive news for the crypto community especially in this country because they won’t be left out of the revolution that’s happening. As of now one of the key strategies of the Bank of Lithuania is development of a conducive Fintech regulatory ecosystem.