When rest of the world is having a debate on regularizing the cryptocurrency environment, a small European nation, Estonia is planning to have its own cryptocurrency. To be called as Estcoin, will launch as tokens as the officials are careful in not calling as currency because it would violate the EU agreement to use the euro.
Kaspar Korjus, MD of Estonia’s e-residency program, has unveiled the details of the country’s plan to launch Estcoin. The coin is expected to go on sale in 2018 to raise money for the country’s e-residency programme. E-residency programme was launched in 2014, where anyone can become an e-resident of the country without having to move there. e-Residents are given a chip-based 2048-bit public key encrypt ID card to access the government services in setting up of the company. The programme is specifically designed to attract investment and has so far generated revenue of $17.2 million and is expected to generate $2.5 billion by the year 2025, according to the study conducted by Deloitte.
The raised money will be utilised in expanding the e-residency services and put in a more clear regulatory framework that will remove the uncertainty that ICOs face in other jurisdictions.
Korjus in his blog post further writes, “The U.S., Singapore, and Switzerland are currently the leading jurisdictions for entrepreneurs considering where to launch their ICOs, although all governments are still figuring out how to regulate ICOs, Unfortunately for both entrepreneurs and investors, that means ICOs continue to operate in what could be described as legal grey areas, at best, while the lack of clarity and trust is holding back the benefits of this innovation in finance.”
“By not embracing crypto, governments are failing to unlock a powerful driver of economic growth and risk losing relevance entirely,” he wrote. “By not embracing public oversight, legitimate crypto investors are tarnished by fraudulent ones, and crypto investors are far less certain about the value and legitimacy of their tokens.”