Estonia Prepares ICO to Roll Out its Own National Cryptocurrency 'Estcoin'

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.

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The government-backed digital currency probably wouldn’t seem much different to existing Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term since it would be introduced via an Initial Coin Offering (ICO) Initial Coin Offering (ICO) An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco Read this Term).

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.

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.