The Bank of Lithuania to launch blockchain sandbox platform-service
Domestic and foreign companies will be able to develop and test one of the most prospective FinTech innovations – blockchain-based solutions – in the regulatory and technological sandbox platform-service codenamed LBChain to be created by the Bank of Lithuania.
‘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 favourable opportunities for investment and attraction of talents as well as acceleration of advanced innovations,’ says Marius Jurgilas, Member of the Board of the Bank of Lithuania.
According to him, 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.
The LBChain platform-service being developed by the Bank of Lithuania would help Lithuanian and international companies gain new knowledge, carry out blockchain technology research, adapting and testing this technology based services in the activities of financial institutions.
The Bank of Lithuania would provide LBChain participants a technical platform and consultations on applicable regulations. It is planned that this platform’s facilities will only be available to innovative companies selected according to certain criteria that devise and develop blockchain technology based services and solutions.
Upon confirmation of the project’s co-financing with EU funds and completion of preparations, the LBChain platform/service could be launched already in 2019.
‘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,’ says Mr Jurgilas.
Development of a FinTech-conducive regulatory and supervisory ecosystem as well as fostering innovations in the financial sector is one of the Bank of Lithuania’s strategic directions.