Estonia has abandoned its plans to issue a national cryptocurrency, Estcoin, under pressure from the European Central Bank and local banking authorities.
Earlier the country was considering three options to introduce Estcoin:
- A public token to boost the development of the digital nation in Estonia, which would include participants of the e-Residency program.
- A governmental program based on Estcoin that would be used to sign documents, get access to various services and work with smart contracts.
- A token linked to the euro. The token was expected to combine some of the decentralized advantages of crypto with the stability and trust of fiat currency, but its use would be limited to the e-resident community.
Draghi criticized the idea, saying that the euro can be the only currency in the country of 1.3 million. Now the plans have changed, says Siim Sikkut, who is in charge of the country’s IT strategy. Estcoins will be given as an incentive to e-residents (citizens of other countries who use Estonia’s electronic identification to remotely sign documents and set up companies).
Sikkut added that there are no plans to create a full-fledge currency, while Estcoins will only be used to conduct transactions inside the e-resident community.
The Republic of Estonia is the first country to offer e-Residency, a government issued digital identity that empowers entrepreneurs around the world to set up and run a location-independent business. Participants of the program can run their business remotely by signing and authenticating documents anywhere, encrypting and sending documents, and declaring taxes online.