Is Estonia About to Have Its Own Cryptocurrency?

Chances are that you know that Estonia exists, but not anything else about it. The small, north-eastern European country is just south of Finland. With a population of just over 1.3 million people, the entire country is only one eighth the size of New York city. Despite its meek stature, Estonia has a reputation for being on the cutting edge of technology.

Estonia is the first country to conceptualize and offer an e-Residency program as an answer to the question, “Estonia has just 1.3 million residents, but what would happen if our country had 10 million digital residents too?” The e-Residency program offers entrepreneurs who work remotely (ie software developers and writers) access to Estonian services, like banking and the right to form corporations. 

People enrolled in the eResidency program are issued a smart card that can be used to sign official documents online, which has considerably eased the bureaucratic burdens on both residents and government facilities. So far, there are over 22,000 e-Residents from 128 countries. The program has also had a positive effect on population growth in the little country; in fact, the rate of e-Residency applications has exceeded the Estonian birth rate.

Estonia also has a number of other digital projects in the works, including what is called the world’s first “Data Embassy”. The Data Embassy will “ensure its state can function entirely independent of its own territory,” just as the e-Residency cards ensure that e-Residents can function without ever setting foot on Estonian soil.

Kaspar Korjus, the director of the e-Residency program, wrote about the idea to create an Estonian cryptocurrency in a Medium article that was posted this morning. “Estcoins” could benefit Estonia in several ways; their ICO would bring in funds and, undoubtedly, global investors.

Additionally, the coin would be used as a means of payment for the public and private sectors; eventually, it could be used as a “global currency” that would be accepted across borders. It’s not clear which protocol Estcoins would be built on, but it is possible that they could employ technologies like the Ethereum-based “smart contract” blockchain; as more kinds of blockchain are created, the possibilities are endless.

Are National Cryptos a Trend?

A national cryptocurrency would allow easy access to investors. Korjus proposed that the crypto funds could be managed jointly by the government and select private companies. The funds raised would be used to further invest in programs like the Data Embassy and e-Residency for the public sector. Money would also be put into Estonian companies held by natural citizens as well as e-Residents.

As governments and institutions are becoming more familiar with the concepts of cryptocurrency and blockchain technology, there have been an increasing number of instances in which the institutions have come up with their own uses for them.

For example, China is the latest country to reveal that it has been in the process of creating and testing its own cryptocurrency for the past year. Singapore, Canada, England, and Russia have previously announced that they have been experimenting with coins of their own.

This is Just the Beginning

Undoubtedly, the crazy amounts of money that are flowing into the world of cryptocurrency are what has piqued the interest of corporations, nations, and investors of all sizes alike. New coins are being developed at an increasing rate; new forms and applications of blockchain technology are coming with them.

Estonia is on the cutting edge of eGovernance technology, but with the rise of the “global” economy, more and more nations will follow suit. This is an exciting time for investors and “citizens of the world” alike.