The Bank of Lithuania, the country's Agency for Science, Innovation and Technology, and fintech hub ROCKIT have held an event to celebrate the progress made on the blockchain-based sandbox LBChain.
LBChain combines regulatory and technological infrastructures and is designed to allow fintech companies to test their business solutions in a controlled environment. The platform will enable Lithuanian and international start-ups and fintech companies to gain knowledge, carry out blockchain-oriented research, test and adapt blockchain-based services as well as offer state-of-the-art innovations to their customers. LBChain is the world’s first of-its-kind platform developed by the financial market regulator (the Bank of Lithuania). The platform will be launched in March 2020.
The event to mark the two-thirds completion of LBChain saw three blockchain platform prototypes demonstrated, where six fintechs have already tested their financial products. Representatives of the Bank of Lithuania and the European Central Bank also shared institutional views on potential uses of blockchain and other innovations and their regulatory issues.
"With innovations rapidly changing the financial world, the Bank of Lithuania seeks to take the driver’s seat on the innovation highway," said Marius Jurgilas, member of the Board of the Bank of Lithuania. "It is of utmost importance for us not only to monitor the evolution of technologies, but to participate in their development as well. We want to help fintech companies to reach their potential, yet we also strive that only safe and ready-to-use products and services reach consumers."
He added that LBChain shows clear potential - the benefits of the project are already visible, even if it is still in progress. The regulatory blockchain sandbox has successfully become the testing environment for a wide range of financial products. It is expected that these products will be available for consumers in the near future.
The six fintechs mentioned have tested a wide range of products in LBChain prototypes, including:
- A KYC solution for AML compliance.
- A cross-border payment solution.
- A smart contract for factoring process management.
- A payment token.
- A mobile POS and payment card solution.
- A crowd-funding platform.
- An unlisted share trading platform.
At the end of September, two out of three prototypes of the LBChain platform will be chosen for the last stage of project development. Lithuanian and foreign fintech companies and start-ups are encouraged to test their products there from early October. Registration for product testing is open.
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