Whether you want to carry out ICO Estonia will encounter monetary law obstruction

nnIn the wake of travels, global government agencies are beginning to be interested in zoning technology based on block chains, especially Estonia hopes to fund domestic digital economy development and technology start-up companies through tokens financing. However, the euro area unified use of the provisions of the euro will have a certain impact on the future of the project. However, the exact outcome may depend on the nature of the token, whether it is a currency or a tool for citizens to interact with the state. The initiative is currently part of the country’s e-citizen program. Although the European Central Bank pointed out that the euro area does not support any form of national currency, but did not completely deny the possibility of tokens.n
A new group began to be interested in ICO, they are the global government.n
But this time they not only warn citizens or regulate this new mechanism. At least one active government is considering whether the technology can be used.n
Baltic State Estonia last month recommended the issuance of government-supported tokens “estcoin” as an extension of the e-citizen program, causing a hustle and bustle. Quickly spread the blog in detail, the funds raised will be used to create a public private sovereign wealth fund to invest in Estonian digital infrastructure projects and technology start-ups.n
The idea of ​​the same praise and ridicule, the European Central Bank (ECB) President Mario Draghi on the exclaimed:n
n”No member of the country can use their own currency, the euro zone currency is the euro.”n
nThe importance of the statement is to highlight a peculiar question: are these new encrypted currency tokens really money?n
Tokens disputen
Although the global government is still discussing whether the encrypted currency is in line with the currency definition, many times the answer depends on the time and manner in which the currency is used. Draghi’s comments show that some countries have incorporated ICOs into the monetary system.n
But the tokens are significantly different from the encrypted currency, making it less like money.n
For example, Estonian wealth funds are more likely to provide new ways of interacting with countries than 22,000 e-citizens of the country (foreigners who can receive ordinary Estonian citizenship and welfare) rather than providing a way to counter the euro.n
Electronic resident program executive general manager Kaspar Korjus on August 22 blog show:n
n”Government-supported ICOs can allow more people to participate more in the future of the country’s rights and interests, not just to provide investment, but also more professional knowledge and achieve substantial growth ideas.”n
nThus the tokens supported by Vitalik Buterin, founder of the tower, can be used as a financing tool, and it is more detailed and targeted than the traditional way: that is, the government issues bonds in international capital markets.n
But some of the paragraphs in the blog may arouse Draghi’s vigilance, which will also cause vigilance from other regulators in the eurozone. Among these paragraphs, Estonia will be able to use “estcoins” as a trading medium for goods and services both at home and abroad.n
A currencyn
In any case, it seems that Estonia is inversion at the end of the horse.n
Because in 2011 to join the euro area, Estonia not only lost the right to issue their own currency and control monetary policy, and can not carry out other currencies outside the euro financing.n
Daniel Heller, a researcher at the Peterson Institute for International Economics at the Peterson Institute for International Economics and former manager of the Bank of International Settlements, said: “If you join the eurozone, you agree Use the euro. Your financing must also be the euro. “n
In the e-mail, ECB spokesman Peter Ehrlich said:n
n”In the EU legal framework, in Estonia and other countries to introduce a single monetary system, only the euro is the legal currency, monetary policy only with the ECB.”n
nThese statements make Estonian public opinion more confusing, especially the project sounds similar to Italy and Greece to create the so-called “parallel” legal currency, can be used in the country with the euro. Both proposals were rejected by European government agencies.n
After rejecting the Italian “parallel currency” proposal, the European Commission spokesman said that only the use of the euro’s order said, “this rule is no exception.”n
Encrypted currency utopian
Although the government did not propose a formal decree, many government regulators made recommendations to regulate the encrypted currency, but did not, as in the traditional market, unify it.n
Although the difference between a lot of people’s opinions is an obstacle to becoming a global tool, there is no way to stop the upward trend in encrypted currency prices, which is a major mechanism for determining the success of the encrypted currency.n
Similarly, the government has begun to hold different opinions on the ICO. But one thing seems certain: some tokens will be seen as securities.n
Although some people are worried about the impact of these regulatory statements, but the industry is still the same as usual continue to related business.n
Although the business operation as usual, but companies and developers trying to let the token is not divided into securities, but called the functional tokens or application tokens. Although these definitions are still in the gray areas of architecture and law.n
At the present stage of the idea, it is unclear how the “estcoins” project will define its tokens, but the project is currently seeking feedback from stakeholders and potential participants.n
Arnaud Castaignet, director of public relations at the Electronic Citizenship Program, said that the initial response from the Estonian start-up and block-chain community was supported, and that the current goal is to list all the pros and cons and then formulate the next step:n
n”We are ready to move on, but domestic discussions are necessary. If someone supports the proposal, then the next step before ICO is to provide a white paper on the value of estcoins and how finance will be used to develop digital states.”n
nIn the blog suggested by estcoins, Korjus did not discuss how the coin coexist with the euro mission of Estonia, which caught the attention of some observers. Castaignet has not answered any more questions on this topic yet.n
Possible way out?n
Although Draghi’s statement has made it clear that estcoin is viable as a national support for digital money, Ebrlich of ECB does not completely reject this proposal. But because the project can be carried out through public and private cooperation, thus avoiding the ECB judicial areas.n
“My understanding is that this is a private idea, not an official position.” ECB will not evaluate the creativity of the private sector. “n
So as long as a reasonable combination of information transmission and legal means, the project may be through the European government agencies to check.n
Heller speculates that the opportunity for the project lies in a bond-like financial instrument that can neither be the official currency nor the traditional bonds.n
And the tokens need to be bound to quasi-official institutions:n
n”Probably the case is that if the state agency is responsible for the issue, we treat them there is a difference, such as the gas company’s debt is not a public debt, because even if it is state-owned, it is also a natural gas company.”n
nDavid Gerard, author of the British commentator, Attack of the 50 Foot Blockchain, says that if Estonia can issue tokens without violating eurozone duties, the project will be legally entitled to attract ICO investors.n
n”The government offers something that will attract attention, and the value proposition of the ICO can be ‘we are a sovereign state with a good reputation rating’, which is indeed very attractive, especially in the bubble economy.”n

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