In August, Estonia revealed it was considering the creation of this planet's first nationwide cryptocurrency. Dubbed the Estonia TokenEST, the digital currency would be part of a continuing program in Estonia known as e-Residency. The objective of that program is to provide virtually anyone with access to the internet the ability to establish a business in Estonia without putting foot in the Baltic state.
In a blog article published on December 18, Estonia's e-Residency program managing director Kaspar Korjus explained the e-Residency program is a government startup, also like most of the startups, it could be financed through an initial coin offering (ICO). He also outlined three possible use cases for the estcoins the ICO would market.
The primary use case for the Estonia TokenEST is as a “community” token. “The neighborhood estcoin would be structured to support the objective of developing our new digital country by incentivizing more people around the globe to use for and also make greater use of e-Residency,” composed Korjus. “Including encouraging entrepreneurs and investors to use e-Residency because their platform for reliable ICO action.”
The next use case is an “individuality estcoin.” In cases like this, that the cryptocurrency would enable members of their e-Residency society to perform such things as digitally sign documents or log into services securely and safely. These tokens couldn't be sold or exchanged — they would be inextricably linked to their owners.
The next use case is the most controversial. The “euro estcoin” could have a value linked to this euro, the fiat currency used in Estonia. Korjus claims this estcoin would not be an alternate to the euro, the creation of that is now banned for any state within the euro zone, but might instead be a token which combines cryptocurrency's benefits with the equilibrium of fiat currency.
While Korjus hasn't set a date for the launching of an estcoin ICO, he did note that cryptocurrency fans have “expressed tremendous attention and largely appeared to welcome the idea” because it was proposed back in August.
However, he also said that traditional institutions have not been so encouraging, but that skepticism doesn't look likely to deter Estonia's e-Residency app from continuing on its present course.
“Change is coming,” composed Korjus. “Crypto tokenization will alter the essence of our world whether we act or not, thus we have to ensure we're taking a lead and that's already occurring in Estonia.”
In case the Estonia TokenEST does come to fruition, it might supply our first glimpse in a future powered by government-backed crypto.