The euro has become a legal tender in Lithuania with the country becoming the 19th member of the eurozone on Thursday.

Ceremonies started in Lithuania with Algirdas Butkevicius, the prime minister, being the first to withdraw euros from an ATM machine in central Vilnius around 20 minutes after the New Year's midnight. Butkevicius promised to give the first ten euros to Money museum at the Central Banko of Lithuania.

"The euro will be the guarantee of our economic and political security, also allowing for faster development of viable economy, creating new jobs and increasing people's income," said the prime minister in a ceremony.

"I strongly believe that Lithuania will strengthen the euro family. We are at the front of economy growth leaders in the European Union," said Butkevicius.

According to the winter forecast from European Commission, Lithuania's economy is expected to grow by 3.5 percent in 2014 and 3.9 percent this year leading the eurozone with subdued growth at a rate of 1.2 percent and 1.8 percent respectively.

Lithuania's President Dalia Grybauskaite emphasized the euro adoption in her New Year's address.

"It is our opportunity to grow and develop as a modern European state, to set ourselves new goals and look firmly to the future," she said.

SMOOTH TRANSITION

Although e-banking, ATM, payment services faced disruptions even a few days before the euro adoption, the Bank of Lithuania argues that the currency changeover is going smoothly.

"E-banking will be fully functional tomorrow. As of today, you can check your balance. Bank cards work, ATMs also work, as far as I know," Vitas Vasiliauskas, the governor of the Bank of Lithuania, was quoted as saying by BNS news agency on Thursday.

According to Vasiliauskas, free of charge exchange of litas to euro has begun on Thursday.

"The whole network of exchange locations amounts to almost 700 exchange spots, covering the whole territory of the country; a lot of time is planned for the exchange," said Vasiliauskas at a press conference on Thursday.

According to the Bank, on the first day of 2015, euros make up 28 percent of value of cash in circulation.

SUPPORT AND FEARS

The latest survey conducted by the central bank in November of 2014 shows a slight majority support for the common currency. While supporters point to closer economic integration with the euro zone, cheaper borrowing costs and increased security, critics fear that prices will rise after the euro adoption.

Supporters also believe euro will ensure the country's stability and economic growth, according to the survey.

An employee from Bite, a mobile service supplier in Lithuania, told Xinhua that adoption of euro makes Lithuania lose its own currency, and lose its status of independence, to some extent.

Local analysts also say that Lithuania's closer integration into the euro zone prompts emigrations, leaving the country short of skilled workers.
The litas has been pegged to the euro since 2002. Lithuania was the last in the Baltic countries to adopt the common currency. Estonia and Latvia joined the club in 2011 and 2014 respectively. One euro equals to 3.4528 litas.