Estonia promotes the process of issuing “encrypted tokens”

nStorming comments: Estonian plans to issue its own crypto currency “estcoin” have sparked much controversy since their announcement, and have even been openly criticized by the president of the European Central Bank. However, Estonia did not stop the move, but took a step closer to launching the token. The head of its e-resident program described the future three uses of the token in its latest blog and also implied that the use of the token would be limited at the ECB’s request.n
nTranslation: Inan
Estonia, the Baltic nation, is pushing its process of issuing its own cryptocrats.n
In a blog post December 19, Kaspar Korjus, head of Estonian “e-residents” program, described three potential uses for the coin, known as “estcoin.” The concept has drawn much attention since its announcement in August, with the speculation that Estonia will become the first country to have its own digital currency.n
Although the e-resident program has not yet introduced such tokens, Korjus explains some of the conceptual foundations in the latest blogs, shows several ways this cryptocurrency can be taken and explains how the e-resident program How to provide a basis for conducting ICO locally.n
The first use case cited by Korjus is “Community estcoin,” which can be used to support Estonia’s goal of building a “digital nation” by motivating people to apply and make more use of e-resident permits.n
According to him, this use case might include rewards programs that estcoin pays, encouraging businesses to adopt tokens, and encouraging investors and entrepreneurs to rely on the e-resident program as a platform for credible ICO activities.n
The second use case of such tokens provides the basis for a secure digital identity issued by the government.n
At this level, Korjus said, estcoin will be used as a “token supported by the blockchain” in its digital society by activities such as digitally signing documents, logging in for services, or executing smart contracts.n
The blog notes that while users of the “e-residents” program may eventually need to buy “identity estcoin,” the money will only be used to maintain the network, not to increase national revenue.n
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Tokens supported by the euro?n
The third use case is quite controversial, that the tokens are pegged to the euro price, a belief that has been criticized by ECB president Mario Draghi.n
Draghi said in September for “estcoin” that “no member state of the EU may issue its own currency; the currency in the euro area is the euro.”n
Korjus said:n
n”Although Estonia can not launch another currency, we can combine some of the decentralized advantages of cryptocurrencies with the stability and reliability of legal tender to limit the use of such tokens within the e-community.”n
nFrom the blog’s point of view, this use case of tokens will require banks to transfer funds into and out of the program. However, once conducted on the blockchain, “community-based exchange of value can be done globally free of charge.”n
Korjus said that “the euro estcoin exchange with the euro will only require digital wallet and the government’s commitment.”n
The token program has been mixed with half-done since its inception, calling it a “solution to the problem.” Korjus also admitted this and said:n
n”Since we announced this proposal, we’ve been listening carefully to feedback from around the world, which has made us not only more aware of how to build estcoin now, but also a better understanding of how people can welcome such tokens.”n

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