The central bank of Lithuania has introduced a new regulatory “sandbox” for startups that are working with blockchain.
Made public last week, the “LBChain” initiative will see the Bank of Lithuania establish a focused platform around the tech, through which companies can develop services.
It’s a significant take on the sandbox model, which witnesses institutions allowing firms to test financial products in a limited setting and under the auspices of regulators.
Marius Jurgilas, a member of the central bank’s board, believes that blockchain technology has particularly great adaptation possibilities in those areas where high data transmission security and credibility is required, e.g. financial operations or electronic voting.
“Blockchain technology has a tremendous adaptation potential for innovations conducive to consumers in both the financial and public sectors. Giving room to regulated development of this technology would provide our country with particularly favorable opportunities for investment and attraction of talents as well as acceleration of advanced innovations.”
‘This platform will contribute to the creation of better conditions in Lithuania for the development of the FinTech business and innovation-friendly regulation, as well as help the Bank of Lithuania keep pace with technology innovations that change financial institution activities,” Jurgilas said.
Those hoping to join the sandbox soon however, will have to wait, as the Bank of Lithuania is looking at a 2019 launch of the platform.
Support for it would include funding from the European Union, although it’s vague just how much funding the economic bloc would dole out towards the blockchain effort.
The move comes months after the Bank of Lithuania solidified its policy on initial coin offerings in October.
“It should be noted that, when deciding on the application and scope of specific legislation of the Republic of Lithuania for specific ICO, the conditions of the relevant ICO should be analysed and assessed,” officials said at the time.
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