Estonia Pushes Ahead on Crypto, Provides Possible Use Cases for Estcoin

Announcements, Blockchain, News | December 20, 2017 By:

The Baltic nation of Estonia is pushing ahead with its plan to create its own cryptocurrency called ‘estcoin.’

The managing director of Estonia’s e-residency program, Kaspar Korjus, announced in a blog post that work on the cryptocurrency is underway, and provided three possible use cases for the token.

Korjus said the main purpose of estcoin is to accelerate the country’s e-resident community and to bring a significant amount of business to the Estonian economy, while also providing additional funds and interest for the development of its digital nation.

“From Estonia’s perspective, estcoins were proposed as a way to raise money and support for the development of our digital nation from more people around the world,” said Korjus. “We would also want to structure the tokens so that they help build our e-resident community and incentivize our own key objective, which is to increase the number of companies started in Estonia through e-Residency.”

Estonia’s e-residency program, launched three years ago, enables anyone in the world to apply for an Estonian digital ID card and then gain access to its e-services. The program has brought the country an estimated €14.4 million in income, including €1.4 million in net income and €13 million in net indirect socio-economic benefits, accourding to an analysis carried out by accounting giant Deloitte. The program is expected to bring an estimated €31 million in net income and €194 million in net indirect socio-economic benefits by 2021.

Korjus said they plan to use estcoin as loyalty points. E-residents could earn estcoins by driving web traffic to e-residency, successfully signing up new e-residents, posting tenders within the e-residency community that provides work to another e-resident or Estonian company, or spending time providing useful advice to other e-residents.

In the second model, the cryptocurrency would serve as blockchain-based token used for activities within Estonia’s digital society, such as digitally signing documents, logging into services or enforcing smart contracts. Estonians and e-residents would receive a certain amount of tokens that are personal and attached to their digital identity and can then acquire more when required. Even if these identity estcoins would need to be purchased, this would not raise any additional revenue for Estonia, but merely contribute to the maintenance of the network.

The third use case under consideration is the euro estcoin. Under this model, estcoin’s value would be pegged to the euro.
It would operate similar to how other types of tokens operate within video games or simulated online worlds. E-residents could purchase euro estcoins within their new platform then trade them with other e-residents and cash out when required, while ensuring that all necessary banking and taxations rules are followed.”

“We will continue to develop these proposals with the public and private sector in Estonia, as well as with crypto entrepreneurs, investors and potential private sector partners around the world,” said said Korjus.