The world’s First CBDC (Central Bank Digital Currency)?

Meet LBCOIN the new Lithuanian Government backed Coin, built on the NEM Blockchain

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What an exciting time in the Blockchain world and the world of Crypto Currencies…..

Whilst the Crypto Currency market has seen a decent return from the early 2018 lows, and Bitcoin is seeing a great comeback, there has been plenty of discussions around the topic of CBDC (Central Bank Digital Currencies):

A CBDC is a “new form of money that is legal tender and digitally issued by a Central Bank or a Monetary Authority (that is a digital representation of sovereign currency)”

Whilst most governments’ around the world are in the process of discussing and evaluating their own CBDC, The Bank of Lithuania has recently announced their new LBCOIN, as the worlds first Blockchain based central bank issued Coin

“Introducing LBCOIN — the world’s first blockchain-based digital collector coin. Turning a new page in the history of numismatics, LBCOIN is an important experiment in exploring the potential of central bank digital currencies (CBDC)”

Built using the NEM Blockchain and the Enterprise grade Symbol platform, this is a groundbreaking step forward for the Blockchain world and our society as a whole

Watch this very cool video for more details from the bank themselves:

What has been happening in the CBDC world so far?

This is a pivotal moment for the CBDC world, as the country of Lithuania launches the first Blockchain backed currency which will be available in Digital form, exchangeable for a physical coin and will have a “real world” value

I have been lucky enough to be involved in a number of Central Bank CBDC projects in the UK and Europe, and I am excited to see this progress. To date, there has been much discussion, White Papers, “requests for opinion” and a few small pilots globally, this step forward to a “Real CBDC launch” is a significant milestone and will help to fast track more of the CBDC projects

A great summary of the research to date can be found on this current IMF report:

https://www.imf.org/en/Publications/WP/Issues/2020/06/26/A-Survey-of-Research-on-Retail-Central-Bank-Digital-Currency-49517

What are the complexities of developing a CBDC?

Anybody working in this space will know that developing a CBDC is not easy, I have literally been in days of discussions on this topic. Due to the complexity of our global financial systems, you are unable to just replace the physical currency with a Digital one.

You must look at the significant impacts, both positive and negative, this will have on the governments’ future functioning and the way that citizens will interact. From Privacy, to Inclusion, to Fraud, to Audit, to Accessibility, to Traceability, to Adoptability — there are many, many, issues to discuss, debate and test.

I am personally excited that the Lithuanian Government has made a giant step forward and I will be looking forward to owning the first CBDC

Please leave your comments in the below on whether you are going to participate in this

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How does LBCOIN work?

For more information on how LBCOIN works:

LBCOIN consists of six digital tokens and one physical silver collector coin.

The Bank of Lithuania is set to issue 4,000 LBCOINs, i.e. 24,000 digital tokens and 4,000 physical silver collector coins. The coin is dedicated to the Act of Independence of Lithuania and its 20 signatories. Each token features one of the signatories and belongs to one of the six signatory categories (priests, presidents, diplomats, industrialists, academics, municipal servants) with 4,000 tokens allotted to each category.

When purchasing LBCOIN, buyers get six randomly selected digital tokens. Having collected six digital tokens from six different categories, they will be able to exchange them for a physical collector coin. Digital tokens can also be stored in a dedicated wallet on the LBCOIN e-shop, sent as a gift, swapped with other collectors, or transferred to a NEM wallet.

The physical collector coin bears an unconventional denomination of €19.18 to commemorate the year of the Act of Independence. In size and form, the physical collector coin resembles a credit card, depicting the Act of Independence and its signatories.

Follow the bank here:

https://twitter.com/Lietuvosbankas

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