LBCOIN? CBDC? Are these really helping to promote mass cryptocurrency adoption?

[roadrunnerjaiv2025]

I read in today’s news that Lithuania’s Central Bank will soon launch its state-backed cryptocurrency called LBCOIN in the wake of the pandemic, which we all know is hurting the global economy so bad. They said that this is meant to encourage people to turn to cashless payments. The trial of blockchain technology and digital currencies started in July and is entering its final phase. It’s a project that Bank of Lithuania (BoL) has been developing since 2018.

It was also mentioned that these developments are encouraging central banks from all over the world to adopt a central bank digital currency.

Excerpt:

“There is no doubt that other countries will be following this experiment closely as the race for a central bank digital currency (CBDC) is accelerating. In a report published on July 2, the Bank of Japan announced moving towards a testing phase aiming at introducing a CBDC eventually.

A survey conducted in January 2020 among 66 central banks by the Bank for International Settlements showed that more than 80 per cent of them were developing a central bank digital currency.”

There’s even a three-paragraph section that vaguely explains how the blockchain works.

There are two things I don’t understand:

1.   Why can’t they just adopt Bitcoin?
2.   Isn’t CBDC just a digital form of “money” and not really a cryptocurrency (because it’s still regulated by a central bank)? How would the blockchain apply there?

In my opinion, this move is quite shady in terms of promoting cryptocurrency. I mean, cryptocurrency is a threat to central banks because its primary purpose is to dismantle the “centralized financial system”, so why are central banks trying to promote cryptocurrency this way now? And how can they confuse cryptocurrency with CBDC so easily? Can someone enlighten me, please? There are a lot of things I don’t understand.

[1714885655]

1714885655

[Maus0728]

After a huge increase of value in cryptocurrency during the 4th quarter of the year 2017, rapid changes occurs especially in the financial and banking sector where blockchain is implemented while banks know that the risk of using decentralized nature of currency can cause a massive disruption on their end if they do not adapt for changes.

As we all know, bitcoin is volatile in nature and a multifaceted tool where it can be used for growing wealth through speculation, trading or as an investment. bitcoin also introduced the concept of a geo-location transaction which is one of the main factor that can change the traditional transaction model used by many big and small businesses.

As per the adoption of bitcoin, still, there are various countries where they do not consider bitcoin as a "legal tender". As a result, some countries treat bitcoin as unofficial currency. That is why this cliche move of testing and creating their own cryptocurrency for the sake of stabilization is their only way for them to adapt in this fast paced technology. Thus, the emergence of stable coins or crypto currency backed by their own bank is one of the common move to reduce the massive volatility risk factor that is imposed.

[davis196]

1.   Why can’t they just adopt Bitcoin?

Because they can't control Bitcoin.

2.Isn’t CBDC just a digital form of “money” and not really a cryptocurrency (because it’s still regulated by a central bank)? How would the blockchain apply there?

Yes,it is.By the way,I wonder when Lithuania will replace the Lithuanian litas and accept the euro as a national currency.
Accepting the euro means that this LBCOIN will become somehow illegal,because it would be weird for one country to have two national currencies.
There are no rules and statements is regards of how the European Central Bank will treat national central bank digital currencies,created by countries that are members of the eurozone.
Anyway,I guess that Lithuania won't enter the eurozone anytime soon.

[tranthidung]

Another thread on Central Bank Digital Currencies: Betting on bitcoin against Central Bank Digital Currencies. You can keep discussions going on that thread which already has a few informative replies.

Future launch of central bank digital currencies do help crypto adoption because the fact is they will catch more attention of people, investors, journalists and of course they will be massively seeded by governments. It is good to make cryptocurrency become more popular. Nevertheless, any currencies from central bank should be considered as faked ones because of centralization. Blockchain is for decentralization that is the core characteristic of blockchain.

I'd like to call them as Centralized Digital Currencies rather than Central Bank Digital Currencies. The name plays as a warning!

[DooMAD]

1.   Why can’t they just adopt Bitcoin?

Numerous reasons.  It's still fairly volatile.  Nation states prefer to be able to intervene directly when their economy falters and they can't control Bitcoin in such a way to do that.  Insurance for losses and thefts is still a big hurdle to overcome.  It simply isn't viable at this stage. 

So they're going to try copying the bits they approve of.  Then, later, they're going to realise that it doesn't quite work like they assumed it would, because you can't just cherry-pick the bits you like and expect the outcome to be the same.   

[Ucy]

Well, a true cryptocurrency has to be well decentralized, or atleast have the main values/principles of "Foundational Bitcoin/Blockchain" (that is, the adopted ideals for Bitcoin in its early days) which is based on these principles: Decentralization, transparency, immutablity, censorship resistant, permissionless/trustless, anonymity/privacy, deflation, rules, network consensus/governance etc.
I believe some really know by now why Bitcoin was invented... it's mainly to have an alternative to the badly run and crisis ridden centralized financial systems. You can't hand Bitcoin over to what the founder/founders were trying to seperate/flee from. The alternative must continue to be built/develop. And it's important to note that this alternative is very much compatible with decentralized and democratic governance/regulation/consensus/rule-making...unlike Centralized "Crypto"

[zasad@]

CBDC will make a lot of changes in the banking system: they will make it possible to pay without intermediaries, no need to open a bank account, fast transactions. But all this will be strictly regulated by law.
In practice, we will see competition between CBDC and other cryptocurrencies. And it will help people understand technology and make the right choice.
If cryptocurrencies become not only the subject of speculation, but become a means of settlement and take a market share of 5-10%, then many industries will not need fiat money for settlement.

[20kevin20]

CBDCs will not be cryptocurrencies. This is the definition of the term "cryptocurrency" from Merriam Webster:

Cryptocurrency definition is - any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions.

This is why the entire CBDC issuing is only mass manipulation but, considering the very low amount of people who have the necessary knowledge to define what a cryptocurrency is or explain how it works, it will unfortunately most likely be a success for them with the manipulation.

They can't adopt Bitcoin because they're banks. Adopting Bitcoin means eliminating the needs of central authorities such as banks and currency issuers. As long as banks exist, Bitcoin will have enemies.

[stompix]

Anyway,I guess that Lithuania won't enter the eurozone anytime soon.

That happened 5 years ago

I read in today’s news that Lithuania’s Central Bank will soon launch its state-backed cryptocurrency called LBCOIN in the wake of the pandemic, which we all know is hurting the global economy so bad. They said that this is meant to encourage people to turn to cashless payments.

Nope, they don't!
LBCOIN is a collectible , nothing more.

https://www.lb.lt/en/digital-collector-coin-lbcoin

Numismatic items issued by the Bank of Lithuania commemorate important events, phenomena or prominent figures. They are intended for collection, however, their use as a means of payment is not encouraged.

So.....what is this topic even about?

[DooMAD]

I read in today’s news that Lithuania’s Central Bank will soon launch its state-backed cryptocurrency called LBCOIN in the wake of the pandemic, which we all know is hurting the global economy so bad. They said that this is meant to encourage people to turn to cashless payments.

Nope, they don't!
LBCOIN is a collectible , nothing more.

https://www.lb.lt/en/digital-collector-coin-lbcoin

Numismatic items issued by the Bank of Lithuania commemorate important events, phenomena or prominent figures. They are intended for collection, however, their use as a means of payment is not encouraged.

Seems like an unusual amount of time and research to put into development just for a collectible.  I'm almost tempted to sound like a conspiracy nut and say that's just a smokescreen.  Perhaps they're worried about a potential backlash from traditionalists?  I can see how plans for a CBDC would seem threatening to some.

[hatshepsut93]

2.   Isn’t CBDC just a digital form of “money” and not really a cryptocurrency (because it’s still regulated by a central bank)? How would the blockchain apply there?

In my opinion, this move is quite shady in terms of promoting cryptocurrency. I mean, cryptocurrency is a threat to central banks because its primary purpose is to dismantle the “centralized financial system”, so why are central banks trying to promote cryptocurrency this way now? And how can they confuse cryptocurrency with CBDC so easily? Can someone enlighten me, please? There are a lot of things I don’t understand.

CBDC is something between a stablecoin like Tether and a centralized payment system. We have some cryptocurrencies that aren't really cryptocurrencies - XRP and Tether, for example, so this system is even a less a cryptocurrency. Also, the whole point of cryptocurrency is decentralization, if it's centralized, it loses all its properties that make it valuable.

The reason why governments do this and seem to be positive towards crypto is because they want to compete with crypto on its own turf and maybe even divert potential users from it towards their system.

[stompix]

~

Seems like an unusual amount of time and research to put into development just for a collectible.  I'm almost tempted to sound like a conspiracy nut and say that's just a smokescreen.  Perhaps they're worried about a potential backlash from traditionalists?  I can see how plans for a CBDC would seem threatening to some.

Government and even local authorities like to throw millions at things that could earn them some publicity and make them appear in the headlines, the collectible coin is not the first one, remember the blockchain stamp?

Lithuania wants to show itself as an emerging IT hub and to steal the crown from Estonia, a few hundred thousand euros spent on this is peanuts compared to the return, especially if you can rub it in their face.
https://twitter.com/GitanasNauseda/status/1294313726359875585

It has become normal for the government to spend money to look like they are embracing technologies, sometimes it works and they build stuff like the Falkirk Wheel, sometimes they end up like Oregon.

[bearexin]

CBDC is just another thing on its own. They are like the stablecoins that are pegged to dollars, or maybe I should say that they are just that same fiat you have stored in a bank being displayed to you as digital currency. And by the way I don’t see the need for CBDC, banks already have their mobile banking apps and internet banking that users can use to send money without the need for cash, so why are they developing CBDC? It just doesn’t make any sense at all.

They should simply tell people that they should avoid cash as much as possible and try to make use of their online banking; sellers can even make use of QR codes to accept transfer to their accounts, so all these things are not necessary. They should just let people make use of Bitcoin, I am not interested in CBDC.