The Estonian government is well known as a world leader when it comes to public use of digital services. They launched the world’s first e-residency program all the way back in 2014, and are now following up on that with proposing the world’s first government sponsored ICO.
What this means is that the government of Estonia could actually be looking to launch its own brand new digital currency, perhaps to be used by the growing number of Estonian e-residents worldwide who conduct business over the Internet.
As many people have pointed out, the original e-residency program offered by Estonia was somewhat limited in what it actually allows an e-resident to do. However, the beauty of the program is that it is ever evolving. The Managing Director of the e-residency program, Kaspar Korjus, has said,
“…as more people discover e-residency, more uses for e-residency are being discovered.”
Money for E-Residents
The Estonian government hopes to launch its own cryptocurrency with assistance from the founder of Ethereum, Vitalik Buterin. The proposed cryptocurrency, popularly known as “estcoin”, could be introduced through the first government sponsored ICO ever.
During the past decade, there has been a sharp rise in cryptocurrencies and their usage and it is obvious why Estonia, a country that is the first to offer e-residency, would want to take advantage of a decentralized, borderless currency.
However, what sets Estonia apart is the fact that its e-residency program and overall digital infrastructure allows it to go to another level. Imagine for example if you as en r-resident could charge Estonian customers in estcoins, pay your corporate taxes and public services in estcoins, and estcoins is accepted as legal tender in the same way as euros in Estonia. If this actually happens, then there is no limit on how deeply integrated cryptocurrencies could become in everyday life.
In fact, Estonia might just be the only country in the entire world that can actually bring the idea of trading crypto assets in a safe and secure manner to fruition. All it needs to do is build upon the already well-established digital infrastructure and eventually allow people all over the world to invest in its digital assets.
How Will Estcoins Work?
Although investment in cryptocurrencies can certainly be risky, it also has the potential of yielding high rewards. Furthermore, investing in Estonia’s cryptocurrency would be different than others since you’ll actually be investing in the development of the country and its digital infrastructure. In a way, you will be betting on the future success of that country, much in the same way as when you invest in traditional fiat currencies.
According to Buterin, estcoins can be used to provide an incentive to potential investors to invest their time and money directly into the success of the country, an option that is currently unattainable through traditional investments.
Buterin further explains:
“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.”
In the long run, estcoins can easily be used as a viable alternative to traditional currency all around the globe, enabling companies all over the world to accept payments in estcoins. Of course, there is potential for estcoins to be developed even further and be used for a multitude of other functions as well.
Featured image from Flickr.