The Estonian Government has clarified it never intended to issue a national cryptocurrency. The Estcoin will only be used within their e-Residency program.
In August 2017, Kaspar Korjus, who is the managing director at Estonia’s e-Residency, theorized the idea of Estonia issuing its own cryptocurrency — the Estcoin. That was all the internet needed to jump aboard the national cryptocurrency train.
While Estonian Prime Minister Juri Ratas may have acknowledged the idea once, government officials are now very clearly denying any claims to it.
In December 2017, Korjus published another article about the Estcoin topic. At the time, he announced his program would be launching the infamous Estcoin for its e-residents. Korjus stated that his initial article had generated an insane amount of views and the idea had received overwhelming support worldwide.
He explained that they decided to discuss the idea publicly as they believed that was the core strength of the e-Residency program. Korjus acknowledged he was surprised with the positive feedback they had received from most institutions — no one ever thought a government-backed cryptocurrency would be well accepted — even if more traditional views were against it.
Mario Draghi, president of the European Central Bank, might have been the loudest voice amidst the opposition. When questioned at a press conference about the subject, Draghi reminded everyone Estonia is part of the Eurozone, which means only the Euro could be the recognized currency.
Korjus, however, clarified that his organization never intended to issue a national cryptocurrency. Their plan was always to use the token as a way to raise money and extend the reach of the e-Residency program. Ultimately, the Estcoin would encourage more companies worldwide to seek its guidance.
The e-Residency Program and Estonia Are on the Same Page
An official in charge of the country’s I.T. strategy, Siim Sikkut, confirmed Korjus’ words in a recent interview. The Estcoins will be given to members of the e-Residency program in an effort to incentivize further adoption of its practices.
Sikkut stated that politicians were onboard with this idea and weren’t looking into releasing a national cryptocurrency. When questioned, Korjus reinforced this idea. At the moment, Estcoin will only be used within the e-Residency community.
The organization has, reportedly, issued more than 35,000 identification cards for people all around the world, with a significant proportion from Russia, Finland, and Ukraine. According to a 2017 report by Deloitte, the program is responsible for bringing in over $16 million. The e-Residents are expected to generate more than $200 million by 2021.
The Estcoin Is a Solution for a Non-existent Problem
Korjus acknowledged that there might not be a need for the program to have its own cryptocurrency. He justified their intentions with the overwhelming support the idea has received around the world.
He stated that the e-Residency program started just like that. There was initially no tangible reason for its inception. However, three years later, they have reached more people worldwide than they could have imagined.
He plans to create the most-trusted environment for companies to launch their ICOs. Korjus claimed the organization has been listening to all the feedback and has researched thoroughly. Thanks to that, they are now capable of advising and guiding companies through the process of launching an ICO.
Unlike other cryptocurrencies these days, the Estcoin will not be backed by any asset or real-world currency. The Estcoin will be issued as a standard utility token and will function as an incentive within the program.