The Bank of Lithuania will issue the world’s first digital collection coin LBCOIN this month, which will be dedicated to the Lithuanian Independence Act adopted on 16 February 1918.
The LBCOIN coin will consist of six digital tokens created in blockchain technology and one physical silver collection coin. In total, 4,000 LBCOIN coins are expected to be issued – 24,000 digital tokens and 4,000 silver coins.
The badges depict the signatories of the Act of Independence, grouped into six categories by field of activity: clergy, presidents, diplomats, industrialists, scientists and municipal employees.
As the management of the Bank of Lithuania emphasizes, this project is one of the first opportunities to start considering the issue of digital money.
Marjus Jurgils, a member of the Board of the Bank of Lithuania, expressed hope that it would help assess how people and systems respond to such innovation and what the prospects for digital money are.
“The main benefit of this project for the Bank of Lithuania is to understand how the processes required to issue such a coin work. We hope that this attempt will succeed, but if not, we will have learned lessons that will help to try again. Not only the European Central Bank, the Central Bank of China “The entire central banking community is ripe for the question of whether we need digital money. We don’t have the answer, but we are preparing for it,” he said.
The LBCOIN digital collector coin will go on sale on July 23. In order to be able to buy as many people as possible, one buyer will be able to buy only one LBCOIN coin during the first six days of the sale, but from the seventh day the number of coins per buyer will no longer be limited.
A buyer who has purchased an LBCOIN coin will receive six randomly selected digital tokens, which can be exchanged for one silver collection coin, kept in the Bank of Lithuania’s online store, exchanged with other collectors or transferred to a digital token in the public NEM blockchain network.
“In the first 24 months, people will have to collect six tokens from different [Neatkarības akta parakstītāju] and send them to the Bank of Lithuania, which will destroy these tokens and send a physical coin by post. Realizing that everyone may fail to collect a set of six different tokens, in the last six months we will allow the physical coin to be exchanged for any six tokens, “Egidijs Paleckis, LBCOIN project manager, told a press conference on Thursday.
According to him, after 30 months, the LBCOIN system will be switched off and no tokens or physical coins will be available.
The price of the LBCOIN coin will be 99 euros. The physical LBCOIN silver collection coin will resemble a credit card in size and shape and will have a face value of € 19.18.
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