Lithuania's Central Bank Unveils Blockchain Startup Sandbox

The central bank of Lithuania has launched a new regulatory "sandbox" for startups working with blockchain.

AccessTimeIconJan 15, 2018 at 4:45 p.m. UTC
Updated Sep 13, 2021 at 7:22 a.m. UTC

The central bank of Lithuania has launched a new regulatory "sandbox" for startups working with blockchain.

, the "LBChain" initiative will see the Bank of Lithuania set up a dedicated platform around the tech, through which companies can develop services (though these would be subject to some gatekeeping by central bank officials). It's a notable spin on the sandbox model, which sees institutions enabling firms to test financial products in a limited setting and under the auspices of regulators.

Marius Jurgilas, a member of the central bank's board, said in a statement:

"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 favorable opportunities for investment and attraction of talents as well as acceleration of advanced innovations."

Those hoping to join the sandbox soon will have to wait, as the Bank of Lithuania is eyeing a 2019 launch of the platform. Support for it will include funding from the European Union, according to the central bank's statement, though it's unclear how much funding from the economic bloc will go toward funding the blockchain effort.

The move comes months after the Bank of Lithuania positioned its policy on initial coin offerings in October.

"It should be noted that, when deciding on the application and scope of specific legislation of the Republic of Lithuania for specific ICO, the conditions of the relevant ICO should be analysed and assessed," officials stated at the time.

Image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.