An ICO within the e-Residency ecosystem would create a strong incentive alignment between e-residents and this fund, and beyond the economic aspect makes the e-residents feel like more of a community since there are more things they can do together.Now, suppose that anyone in the world can establish residency in Estonia and then establish a business, and then in that business they can transact in a government-issued digital currency. This currency can of course be used to pay the country’s minimal taxes. Local industries will be stimulated as a result, industries which cater to foreign residents who are trying to do such things as create businesses, acquire property, and so forth.
The whole thing begs the question of when other countries will begin to compete with Estonia for real estate in the blockchain kingdom. There are many islands that have sought to enter the 21st century in ways that enabled global participants to engage in mutually beneficial behavior with them – the .TK domain comes to mind, wherein people around the globe were able to get free top-level domains as well as purchase domains from a tiny island nation.
Another useful point to make is that global know-your-customer compliance can be easier achieved when digital residents become the norm. In the case of Estonian e-residents, selective information could be shared with agencies who needed it in order to verify the status of someone trying to do business or invest.