The central bank of Lithuania has begun turning their attention to cryptocurrencies as Lithuania commences crypto talks between commercial banks, cryptocurrency traders, and regulators. Reports from the Baltic times have indicated that the talks involve clarifying their attitudes towards cryptocurrencies.
According to Jekaterina Govin, the Fintech strategy coordinator, despite the risks associated with cryptocurrencies, a blind denial and reluctance in understanding how the technology and industry works is not the better option. People from the banking sector, ICOs, FNTT officials and others were present at the meeting.
Additionally, Govin added that banks should discuss with those who have invested in cryptocurrencies or ICOs, and those who have converted cryptocurrencies to fiat. As Lithuania commences crypto talks, they aim at establishing a clear line between financial services and activities surrounding cryptocurrencies.
This follows an announcement by the Baltic States for their support of the blockchain technology. The states, including Estonia, Latvia, and Lithuania signed a memorandum of understanding to support blockchain innovation across their countries.
Also, Regulators in the country issued guidance that covered the blockchain funding use case. They also gave warnings to the consumers involved with ICOs that they are yet to be regulated and thus investors should be careful as this poses possible risks.
Furthermore, the government of Estonia has been in the forefront in supporting cryptocurrencies. In fact, they had plans to launch their coin named Estcoin that would be used in its e-residency program. This project would help increase investment in cryptocurrencies and blockchain startups.
Additionally, the central bank of Lithuania through a document clarified their stand regarding digital coins. The bank, in reply to individual financial market participants, stated that cryptocurrencies are not compatible with the provision of financial services. Thus, any activities regarding the industry must be separated from any electronic money institution or payment firm.
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