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The Bank of Lithuania has published a comprehensive paper on its take on the development of a central bank digital currency (CBDC). Titled “CBDC: in a whirlpool of discussion,” the paper highlights Lithuania’s views on the emerging crypto market and how it can create a solid approach in developing its own digital currency.
The analysis also outlined the overall perception of Lithuania towards CBDCs, citing three major views on the subject. These are a secure and cost-efficient option for cross-border payments; a means to address payments shortage and an approach that should not be considered as an all-encompassing solution.
This is Lithuania’s maneuver in ensuring that it’s not left behind by the accelerated evolution of the fintech industry, which has been deeply disrupted by blockchain technology. Marius Jurgilas, Board Member of the Bank of Lithuania, said that they’ve been monitoring this evolution and is slowly creating a strategy how to properly adopt the nascent innovation.
Old is out
“It is fascinating to follow how fast the area of digital assets and currencies is evolving. It is not prudent to be a casual observer, as this puts regulators and supervisors in the anxious position of a parent who is disgruntled to see that his ‘parental controls’ are completely out of date. The preferred approach is to face the risks and gain hands-on experience in a controlled environment,” Jurgilas said.
He added that if Lithuania aims to shield itself from threats coming from the technological sector, then its strategy should not be based on an outdated perspective.
Lithuania nurtures crypto initiatives
The paper’s publication comes months after Lithuania changed its stance regarding ICO and virtual currencies. However, although the government is implementing all these changes, it’s still wary of the risks that is brought by a CBDC and the crypto industry as a whole. But this isn’t to say that it’s been standing idle all this time.
There are two major projects that Lithuania is currently working on. First is LBChain, a blockchain-based technological sandbox. And second is LBCOIN, a digital coin collector. Both initiatives will play a significant part in Lithuania’s journey in transitioning to the digital space.
