Estcoin May Become The First National Cryptocurrency

Estcoin May Become The First National Cryptocurrency

in News
Estonia seems to be already living in the future. Today the country is about to take a radical new step by becoming the first nation to launch its own cryptocurrency. In a public-private partnership approach, the Estonian government has partnered with Ethereum-based recruitment company Chronobank to facilitate the token offering in 2018. Scheduled to launch in January 2018, the organizers are expecting to raise around 30 million euros with the crowdfunding. The authorities are forming two organizations to streamline the tasks – one of them is a non-profit, called TokenEST SA, and the other a commercial entity, called TokenEST OU. Estcoin is not intended to provide "an alternative to the euro" — in fact, one of the triumvirates of possible options would see the digital currency pegged to the euro. In the blog post issued on December 19, the managing director of the country’s e-Residency initiative, Kaspar Korjus went over three potential uses for the token.  
  • promote the goal of developing Estonia’s aims to create a “digital nation” by incentivizing citizens to “apply for and make greater use of e-Residency.”
  • use the token for implementing a basis for secure, government-issued digital identities. Estcoins could 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.”
  • to peg the price of the token to the price of the euro — a concept that was blasted by the president of European Central Bank — Mario Draghi.
“The U.S., Singapore, and Switzerland are currently the leading jurisdictions for entrepreneurs considering where to launch their ICOs, although all governments are still figuring out how to regulate ICOs. Unfortunately for both entrepreneurs and investors, that means ICOs continue to operate in what could be described as legal grey areas, at best, while the lack of clarity and trust is holding back the benefits of this innovation in finance.” The idea for Estcoin was first mooted in August, as a crypto token that would use decentralized blockchain technology, also used for bitcoin — the proposal was sharply condemned by European Central Bank chief Mario Draghi, who said in no uncertain terms "no member state can introduce its own currency." However, Korjus remarked: “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.”   What do you think of the initiative? Please, share your thoughts in the comments section below.  
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