Studying three variants

Estonia to forge ahead with Estcoin

20/12/2017

The Estonian government is studying three ways to use blockchain-based tokens - not coins - in combination with its e-Residency network of digital entrepreneurs. The tokens could be used to reinforce digital identity, create funding opportunities for the e-Residency network, or simply peg the token to the country’s currency, the euro.

“We will continue to develop these proposals with the public and private sector in Estonia, as well as with crypto entrepreneurs, investors and potential private sector partners around the world,” writes Kaspar Korjus, Managing Director at e-Residency, in a blog post.

“We’re working to make e-Residency the best option globally for entrepreneurs launching a trusted ICO, while proceeding with three variants of our own ‘estcoin’ under consideration.”

In August, Estonia attracted global media attention when the country suggested creating its own Bitcoin version, Korjus writes. “The article went viral almost instantly, generating a large amount of media coverage globally, including in most major publications. Our best estimate is that around 200 million people around the world read about the idea.” Most notably, the idea was rejected by Mario Draghi, President of the European Central Bank, at a press conference on 7 September, saying: “No member state can introduce its own currency; the currency of the eurozone is the euro.”

Korjus writes: “Estonia’s only currency is the euro and this is an essential feature of our EU membership, which we are proud to have. No one here is interested in changing that.” However, he adds: “Governments do need to consider the disruptive impact of how crypto tokens can be used as currency because they provide a more efficient means for exchanging value globally. However, crypto tokens have far more significance than their use as a currency and don’t necessarily fall into that category.”

More information:

Kaspar Korjus blog post

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