Bank of Lithuania to Release Blockchain Testing Sandbox

During the last few months, more and more companies experimenting with blockchain technology have considered creating their very own sandbox, meant for testing out software prior to public release.

Now, recent reports indicate that the Bank of Lithuania has announced a few new regulatory measures, alongside a sandbox platform, whose purpose is to encourage both domestic and international companies to test and develop more blockchain-based solutions.

The platform, known as LBChain, will not only allow companies to test blockchain project, but rather to also carry out research, adapt their services and try using technology within the services of financial institutions operating in the country.

In a recent press statement given by a member of the Board of Lithuania’s National Bank, it was mentioned that: “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.”

Marius Jurgilas, responsible for the statement above, also believes that the technology could prove its value in areas where high data transmission security is required, but also within other forms of operations, including electronic methods of voting.

The Bank of Lithuania will also provide participants with consultations on the currently-applicable legislation in the niche. It is however important to keep in mind the fact that the platform will only be open to companies that are selected based on certain requirements.

At this time, it is expected that the platform will launch sometime in early-2019, following the EU-fund based financing of the project. Lithuania, Estonia and Latvia are all members of a Memorandum of Understanding, signed back in 2017, which serves the purpose of making it easier for the countries to cooperate in the blockchain technology domain.

Based on everything that has been outlined so far, it will be interesting to see whether the Lithuania-backed sandbox will help increase technological innovations in the region. However, as long as regulatory measures are innovation-friendly, then chances are that the market will see some interesting developments from this region.