Domestic and foreign companies will soon be able to develop and test Fintech blockchain solutions in the regulatory and technological sandbox platform-service LBChain, which is to be created by the Bank of Lithuania.
‘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 talent, as well as make Lithuania a home for innovations,’ states Marius Jurgilas, Member of the Board of the Bank of Lithuania.
Mr Jurgilas point outs that the potential applications of blockchain technology could prove to be extremely valuable for 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 will enable Lithuanian and international companies to gain new knowledge, carry out blockchain technology research, and adapt and test services that use this technology within the activities of financial institutions.
The Bank of Lithuania will provide LBChain participants with a technical platform and offer consultations on applicable regulations. It is planned that this platform’s facilities will only be available to innovative companies that are to be selected according to certain criteria.
Upon confirmation of the project’s co-financing with EU funds, and the completion of initial preparations, the LBChain platform/service could be ready to launch as early as 2019.
‘This platform will contribute to the creation of better conditions in Lithuania for the development of FinTech businesses, as well as provide innovation-friendly regulation. Moreover, it will help the Bank of Lithuania to keep pace with the technological innovations that are changing the activities of financial institutions,’ says Mr Jurgilas.
The development of a FinTech-conducive regulatory and supervisory ecosystem, as well as the fostering of innovations in the financial sector, are two of the Bank of Lithuania’s strategic directions.