The managing director of the Estonian e-residency program has proposed the creation and issuance of a national virtual currency to be called Estcoins. The Estcoin would exist on a Blockchain-based system and be issued by the country’s central bank via an official initial coin offering (ICO).
Potential benefits of Estcoins
The proposed digital currency would become Estonia’s national virtual currency. The currency would provide several benefits for the country’s economy and its international e-residents. The proposal would be launched via the first government-supported ICO in history.
The Estcoin could also become the official currency for the country’s e-residency program. Under the program, Estonia’s e-residents, regardless of place of birth or residency, can notarize any document on the Blockchain.
The proposed Estcoin project has gained the support of Ethereum co-founder Vitalik Buterin. If the proposal is passed, it would likely push digital currency toward mainstream use throughout the world. Governments might be much less hostile toward virtual currency if Estonia were to use it successfully on a national scale.
Several issues about the project
Despite the feasibility of the proposal, there are several issues that need to be resolved. Among these questions is that of how the tokens will be issued after the ICO. It is not yet clear whether a Blockchain will be involved in the project. Another issue is how the Estonian government will spend the money raised from the ICO. One possible option is to invest the money in both public and private ventures.