The Central Bank of Lithuania To Launch a Blockchain Sandbox in 2019
RegulationBit News Today1 min read
The Central Bank of Lithuania is set to launch a blockchain technology sandbox in 2019, providing a dedicated platform for startups working with blockchain. Known as the LBChain initiative, the project was introduced in January with an anticipated 2019 rollout, though the central bank later indicated that implementation was expected to get underway that summer.
The technological sandbox is designed to help domestic and foreign businesses learn about blockchain technology and perform research focused on it. Selected firms will be given a technical platform and consultations on applicable regulations, helping them develop solutions for the financial sector.
Attracting Innovators
The platform will allow fintech firms to test blockchain-based financial tools while familiarizing themselves with Lithuania's regulatory, business, and investment climate.
The central bank had previously embarked on efforts to support financial technology. In October, the central bank positioned its policy on initial coin offerings (ICOs) and has been working to make Lithuania a hub for FinTech companies in the region.
By granting non-bank financial companies direct access to its payments infrastructure, the central bank allows them to deliver euro-area payment services independently.
Fintech companies from a wide variety of countries, from the United States to Singapore, have established operations in Lithuania. Multiple Chinese fintech firms have already gained entry to European financial markets through Lithuania, while others have entered consultations.
The UK's Financial Conduct Authority launched the first "regulatory sandbox" in 2016, and similar formats have sprung up around the world since then. This open and adaptable regulatory environment has enabled Lithuania to serve as a gateway for fintech companies into Europe's banking and payments markets.
