Physical cryptocurrency might seem like a pretty strange concept; however, crypto fans and coin fanatics should take a look at Lithuania, where the Baltic’s nation’s central bank, said on Tusday, that it has plans to release a cryptocoin that has been designed to be aimed at enthusiasts and is due to be released late on this year.
It should be noted that this new physical coin is intended only as a collectors item, and there are no plans for the digital coins to be issued with a view of them entering circulation. It cannot be used a legal tender.
This is a big move for Lithuania, and Marius Jurgilas, who is a central bank board member said that he hopes the world will show that the country is;
“Progressive and innovation-fostering country, always open to new ideas…Introducing a digital collector’s coin, Lithuania would be the first to break new ground in numismatics.”
Banks across the world have been notoriously wary of cryptocurrencies, and have approached them with great caution. This is normally due to their speculative characteristics, unpredictable price movements, and their use in criminal activities. Just last week, the Bank of England Governor Mark Carney, called for greater regulation, and even said that he wanted to bring the era of cryptocurrency ‘anarchy’ to an end.
Despite this seeming like a very niche market, they actually are not the first country to create a physical coin, and in fact, Venezuela actually went one step further, by saying that they will start the world’s first sovereign cryptocurrency. They are trying to position itself as a financial-technology hub, with the aim of being attractive to start-ups, and particularly those in the banking sector. Reports suggest that next year, it will also offer domestic and foreign companies a platform designed using blockchain technology to test the finance related innovation. Just watch this space!