The Bank of Lithuania is taking steps to better understand blockchain technology and its modus operandi by creating a new regulatory “sandbox” for blockchain-based enterprises. This move is to help both domestic and foreign companies develop and test FinTech and blockchain solutions.
The new initiative by the Central Bank is called “LBChain” and it is a framework that allows companies and enterprises to carry out blockchain technology studies and research as well as test several financial products under the supervision of regulators. Participating ventures and entrepreneurs will be provided with a technical platform and will also be offered consultations on applicable laws and regulations.
A member of the board of the Lithuanian Central Bank, Marius Jurgilas said “Blockchain technology has tremendous potential for innovations that will benefit consumers in both the financial and public sectors… giving businesses room for the regulated development of this technology will make our country increasingly attractive for investment and help us attract the best talents, as well as make Lithuania a home for innovations.”
The initial selection of blockchain-based companies to participate in the “sandbox” project will be based on certain agreed criteria. The program could be launched as early as 2019 after a confirmation of the project’s co-financing with the European Union (EU) funds.
Jurgilas adds that;
“This platform will contribute to the creation of better conditions in Lithuania for the development of FinTech business and innovation-friendly regulation, as well as help the Bank of Lithuania keep pace with technology innovations that change financial institution activities”