Estonia, a Baltic state in north-eastern Europe, is studying the prospect of issuing its own cryptocurrency and is aiming to roll out the product as soon as possible under the name Estcoin.
The government-backed digital currency probably wouldn’t seem much different to existing cryptocurrencies since it would be introduced via an initial coin offering (ICO).
The creation of Estonia’s state digital currency was discussed in a blog post published earlier this week by the managing director of the e-Residency programme, Kaspar Korjus.
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A similar attitude toward digital currencies has been developing recently with central banks in Russia and China already announcing trial runs of prototype cryptocurrencies, which could serve as rivals to the likes of Bitcoin and Etherium.
Part of this progress, however, was achieved only because the authorities in these countries don’t want to cede the cryptocurrency space to companies it has no control over, claiming this could create a long-term jolt for national economies.
e-Residency programme director Kaspar Korjus wrote: “No other country has come close to developing both the technology and the legal frameworks that would enable them to introduce and securely manage tradable crypto assets globally.”
“The secure digital identities used by e-residents (as well as citizens and residents of Estonia) are now the ideal mechanism for securely trading crypto assets in a trusted and transparent digital environment. The tokens cannot be counterfeited and the government oversight means they cannot be used for illegal activities,” he concluded.