The Euro Zone is set to experience another face of central bank-issued digital currency, following a recent announcement about the Lithuania digital token. The Baltic country is looking to secure its financial spot from the likes of Facebook, by proposing a digital coin which will be issued starting from next week.
Euro Zone to see a new face of CBDC with Lithuania digital token
According to a recent report, the proposed Lithuania digital token is dubbed LBCOIN. The development is intended to serve as a trial for the daily usage of blockchain, the technology behind cryptocurrencies, and CBDC. More so, the country expects to stay ahead in the development of the digital version of fiat currencies.
Most precisely, about 24,000 Lithuania digital tokens are going to be issued on the blockchain technology for sale starting next week. The token will be purchased at the value of €99 in packs of six, per the report. It will feature one of the portraits of prominent figures that signed for Lithuania Independence back then in 1918.
While speaking on the development, one of the executives at the central bank of Lithuania, Marius Jurgilas, explained:
No one in the central bank community was thinking about digital currency seriously before we realized that there is a legitimate threat that someone else will take our space. […] We need to provide society with what it wants.
Facebook Libra propels CBDC development
Aside from being similar to CBDC as a digital version of fiat currencies managed by central banks, the Lithuania digital tokens are exchangeable. As reported, the tokens can be traded and exchanged with the bank via blockchain for physical silver coins with a nominal value of €19.18.
The coronavirus outbreak has probably propelled the development of digital alternatives for fiat currencies, especially CBDCs, as the public turned to cashless payment methods as a safety measure. Ultimately, the concept of CBDC gained ground following the proposal of Facebook’s Libra, which governments’ feared might undermine their financial system.