The country of Estonia has revealed it is working on the creation of the world’s first national cryptocurrency. Having already named it, “estcoin,” this potential digital currency would become part of an ongoing program in Estonia called, e-Residency.
The goal of the program would be to give almost anyone with access to the internet the chance to establish a business in Estonia without having to physically live in the country.
On December 18, Kaspar Korjus, Estonia’s e-Residency program managing director, shared a blog post explaining that the e-Residency program is a government startup, and like most of today’s startups, it is possible to be funded through an initial coin offering. He went on to share three potential use cases for the estcoins the ICO would sell.
First of all, the estcoin could be used as a “community” token.
Korjus explained, “The community estcoin would be structured to support the objective of growing our new digital nation by incentivizing more people around the world to apply for and make greater use of e-Residency. This includes encouraging investors and entrepreneurs to use e-Residency as their platform for trusted ICO activity.”
The next use case he shared was an “identity estcoin.” In that example, the cryptocurrency would allow a member of the e-Residency society to do things like digitally signing documents or logging into services safely and securely. These tokens could not be sold or traded — they would be inextricably connected to their owners.
The third use case he outlined is the most unusual. The “euro estcoin” would have a value connected to that of the euro, the fiat currency that is used in Estonia. Korjus explained in his blog that estcoin wouldn’t be a replacement for the euro, which would be illegal for any nation within the euro zone, but would instead be a token that combines cryptocurrency’s advantages with the stability of a fiat currency.
Korjus has not yet set a date for the launch of the proposed estcoin ICO. However, he has shared that cryptocurrency enthusiasts are expressing a lot of interest and appear to be welcoming the idea ever since it was shared back in August of this year.
Unfortunately, traditional institutions have not been as supportive, but Korjus says that skepticism will not likely deter Estonia’s e-Residency program from continuing to implement its current plan.
“Change is coming,” shared Korjus. “Crypto tokenization will alter the nature of our world whether we act or not, so we must ensure we are taking a lead and that is already happening in Estonia.”
Government-backed cryptocurrency may be the answer for many countries. If all goes according to plan, and estcoin becomes a reality, it may open the door to a new future across the globe.