Estonia Presents Further Suggestions For Its Cryptocurrency, Which It Wants to Call A Crypto Token Instead
You might have heard that one of Estonia’s government agencies had expressed its intent to launch its own cryptocurrency, a concept that was proposed back in August and one which was met with polarity. While some had praised the decision, others had been quite vocal about being against it.
Furthering the country’s stance on the situation, Kaspar Korjus, the Managing Director of Estonia’s e-Residency program, wrote a detailed post which not only responded to the criticism regarding the proposed cryptocurrency but also further explained the intent behind proposing it in the first place.
Korjus mentioned in the post that there has been an outpouring of support for the initiative which has helped the country in understanding how a cryptocurrency can be shaped while ensuring that it does not disrupt its relations with any stakeholders.
Specifically responding to European Central Bank’s President, Mario Draghi’s comments on how Estonia could not start its own currency and needs to stick with the Euro, Korjus clarified their stance by stating that challenging the Euro was never their intent.
“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. That’s why we have always referred to estcoin as a proposed ‘crypto token’.”
“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.”
Korjus further clarified that the “crypto token”, named “estcoin”, was only proposed as a way to raise money and support for the development of their e-Residency program from people around the world.
He explained that the aim of these tokens is to help incentivize their own key objective for the e-Resident program, which is to increase the number of companies started in Estonia through e-Residency.
What is the e-resident program anyway?
The e-Resident program is Estonia’s initiative to involve businesses and entrepreneurs from around the world in order to attract more business opportunities for the country.
Anyone from outside Estonia can apply for the program, which provides them with a government-issued digital identity, allowing them to “run a global, EU-company online from anywhere in the world”.
e-Residents can gain access to online services such as the ones outlined below.
- Digitally sign documents and contracts
- Verify authenticity of signed documents
- Encrypt and transmit documents securely
- Establish an Estonian company online
- Administer your company from anywhere in the world
- Apply for third-party services like e-Banking and remote money transfers
- Access online payment service providers
Solutions provided for the crypto token
After clarifying the government agency’s stance behind the proposal, Korjus went on to explain how they think the crypto token could be put to use.
1. Community Estcoin
This particular option was explained as being focused on further developing the e-Resident program. It mentioned that this would help encourage more people to apply for e-Residency.
This option could include rewards schemes that would pay out in estcoin. It was explained that this would encourage businesses to adopt the token and would work towards trusted ICO activity.
2. Identify Estcoin
This was described as providing a basis for secure, government-issued digital identities.
Here, it was mentioned, estcoins would be used as “blockchain-based tokens used for activities within our digital society, such as digitally signing documents, logging into services or enforcing smart contracts.”
It was also explained that while “identity estcoins” would ultimately need to be purchased by users of the e-Residency scheme, they would not raise revenue for the nation and might only contribute to the network’s own maintenance.
3. Euro Estcoin
Before clarifying again that the government will “never provide an alternative currency to the euro,” it was further suggested that “it’s possible that we could combine some of the decentralized advantages of crypto with the stability and trust of fiat currency and then limit its use within the e-resident community.”
It was further elaborated that this fiscal use case for the token would require banks to move money in and out of the scheme. However, it was assured that community-based value exchanges could take place globally without additional charges once the amount is on the blockchain
The post went on to explain that all that will be required for this option is a digital wallet and the commitment of the government to buy back every Euro estcoin for one Euro.
World reactions still to come
It cannot be said for certain if this particular post by the Estonian agency would also have as wide a reach as the previous one, but it would be interesting to see what the world leaders especially those pertaining to the EU have to say about this. The third option seems to the most ambitious and the most controversy-inducing as well, which is why only relevant parties’ comments would be the ones to look forward to.