Estonia Considers Launching Its Own National Cryptocurrency

Estonia’s e-Residency program managing director, Kaspar Korjus, has outlined a detailed plan to introduce the first government-backed cryptocurrency, called “estcoin.” The proposal to institute a national cryptocurrency was first made in August and, despite criticism from the European Central Bank, Korjus went ahead and described three use cases in a blog post.

“No member state can introduce its own currency; the currency of the euro zone is the euro,” said European Central Bank president Mario Draghi.

Korjus argues the virtual currency could be used as a community token “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.” He said estcoin would “allow members of the e-Residency society to do such things as digitally sign documents or log into services safely and securely” and a euro estcoin “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.”

If supported by the government, Estcoin would be the first state-managed cryptocurrency, but the Estonian government and Estonia’s central bank were not consulted.

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