The Baltic based nation Lithuania, however, small it may seem, and literally it has outperformed several nations when it comes to the token economy. Ideally, cryptocurrency is fast becoming dominant as an investment and as well as a payment tool. This has helped in fueling the country’s economy to greater levels.
Despite the fact that, Lithuania is enjoying the cryptocurrency boom, the European central bankers are of a different opinion. They argue that the virtual currencies will increase the illegal activities as well as disrupt the financial system that exists currently.
The Open Arms Approach
Unlike other countries that are restricting cryptocurrency, Lithuania has taken a different path. For them, they have fully embraced all the businesses that are blockchain-based by not imposing any sought of regulatory or legislative roadblocks.
The outcome of the country’s open nature of embracing the crypto business is quite clear as the economy of the nation is taking an upward direction growing by 3.1 %. This value is basically higher by almost 1% that of the European average which is at 2.3%.
What the Central Banks Are Saying
Despite Lithuania enjoying a financial boom, the central banks in the EU are expressing their concerns just as usual. They all claim that the cryptocurrency market might be used by most criminals who may be laundering money from ill-gains and turn them into assets which can’t be traced and may fund some illegal activities like terrorism and many others.
For instance, the bank of England’s Mark Carney said that virtual currencies thus far has just failed as it isn’t a store of value since it is not used everywhere as a medium of exchange.
The National Bank of Poland went as far as paying Marcin Dubiel, a YouTube star to create some video against the crypto. The central bank of Spain governor also said there are more risks than benefits in the use of cryptocurrencies.
Nevertheless, with all the negativity Lithuania is still positive that is according to Antennas Guoga, Lithuanian MEP who says more innovators are getting more attraction. Despite the fears, more startup incubators are flooding in the Lithuanian capital, Vilnius.