September marked an important month for Estonia. The region introduced plans for the “Estcoin”, a cryptocurrency designed to augment the nation’s e-residency program, thus allowing citizens to garner investments in the country’s growth. Although the E.U. and European Central Bank quickly nixed the plan at the time, it seems the Estcoin could be coming back.
Too Many Unanswered Questions
The Estcoin was rejected by European Union authorities, particularly European Central Bank (ECB) head Mario Draghi, who stated the currency would draw competition to the euro and that no member of the E.U. held the right to issue national currencies in the first place.
The plan was struck down almost as swiftly as it was introduced, and it seemed Estcoin had disappeared for good.
But now, the digital currency is making its way back into the headlines. Founder of Estonia’s e-residency program Kaspar Korjus has introduced a lengthy post discussing how the coin could potentially work, and the uses it has for bringing the nation forward.
Three Big Points About Estcoin
For one thing, Korjus said e-residents have already brought €1.4. million ($1.6 million USD) to the country directly, and investments are poised to surpass one billion euros by 2025. The Estcoin isn’t necessarily designed to compete with the euro, he reassured, just give businesses a chance to thrive and bring the advantages of crypto to the world of fiat.
“By not embracing crypto, governments are failing to unlock a powerful driver of economic growth and risk losing relevance entirely,” Korjus explained.
Additionally, Estcoin would serve as an “identity coin” and allow e-residency members to log into services safely and digitally sign documents. Coins would always be linked to the owners, thus disallowing their trading and selling.
Lastly, Estcoin would work as a “community” token. Korjus added:
“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 (initial coin offering) activity.”
A Few More Obstacles to Overcome
While Korjus has garnered interest from the private sector, government regulators have been hesitant to issue their support. The euro still serves as the nation’s official currency, and they’re unsure how Estcoin could affect it in the long run.
Still, Korjus isn’t giving up hope, and he’s confident the coin will garner the attention it deserves.
“Change is coming,” he stated with confidence. “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.”
Estonia is not the first nation to study the advantages of a nationally-issued cryptocurrency. Countries like Venezuela and Russia have already introduced residents to the “petro” and the crypto-ruble respectively, while Japan and Sweden have also mulled creating national cryptocurrencies of their own. Australia has also toyed with the idea, though plans have yet to be solidified.
Will Estcoin receive the backing it requires? Post your comments below.
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