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In Estonia, you may receive national cryptocurrency for "electronic citizens"
Material posted: Publication date: 31-08-2017
For several years, Estonia holds the policy formation as an e-state. Last year on Geektimes published quite extensive material with information about the system of e-citizenship, online voting, public electronic services, and much more. As for e-citizenship, the development program of this direction, Estonia has proposed three years ago.

Almost any foreigner (with a few exceptions) can obtain the electronic residence (or citizenship, although this is not the correct term), then that person become available a large number of possibilities for doing business in many countries. In particular, the "electronic citizen" can open an Estonian Bank account, register company, get an electronic signature for verification of their documents anywhere in the world. And now this country is considered another interesting bill — issuing its own cryptocurrency, which, in case of his appearance, will be called estcoins.

To use this cryptocurrency, you can all the same "e-citizens". Any foreigner receiving e-residence will be able to start working with the Estonian cryptomelane. If all goes as planned, in the near future new cryptocurrency (her appearance is still not 100% reality) will go through the procedure for Initial Coin Offering (ICO). Estonians promise a minimum of bureaucracy and a maximum of efficient work.

Probably this is another step aimed at attracting a new virtual citizens who can support the economy of Estonia by, as mentioned above, open accounts in Estonian banks holding commercial operations.

By 2025, a Baltic state with a population of just 1.3 million people, hopes to receive 10 million e-citizens. Now not so much, only 22 thousand. But these people — entrepreneurs who already have a positive impact on the economic infrastructure of the country.

By the way, if you're interested, the first place in the list of countries from which the profit "e-citizens" — Finland. Followed by Russia, Ukraine, USA and the UK. As you can see, the program of e-citizenship has attracted many, and not in vain. More and more people began to look for the opportunity to engage in a legal business abroad, with a simplified system of registration of such business and security guarantees. Someone just wanted to get an international status and some obstacles put by the government of their own country. "Country as a service" — and Estonia, it seems, is becoming just such a country (in the positive sense of the term)

The causes which impel representatives of other countries to register in Estonia as a resident, even if electronic, is clear. This geographical independence, low bureaucracy, low overhead and access to the various services mentioned above.

In turn, in Estonia gradually develop the electronic services for residents and businesses to invest in these services heavily. Work with the program in many countries, including the US government.

The traditional business model is changing due to Estonia, where they receive shelter people who want to work without problems all around the world without experiencing difficulties with bookkeeping, bureaucracy officials and other complex things. The President of Estonia recently said that all this is not enough, and if the country wants to keep pace with the digital era, you need something more.

Where are cryptocurrencies?

E-residents of Estonia, despite the fact that can work everywhere, still restricted in their actions. We are talking about monetary limitations and all that is connected with the exchange of currencies and corresponding banking transactions. What if there was an electronic currency, which too has no geographical reference? For example, as bitcoin does. This is, no doubt, very convenient.

Actually, cryptocurrencies are ideal for e-residents, since the idea underlying these coins is the same — the lack of geographic boundaries and minimum control over operations. Some countries, realizing that the cryptocurrency may be the future for some time develop their own version of bitcoin alternatives. Especially here succeeded China.

But in Estonia — the perfect combination of factors for launching its own cryptocurrency. No other country anywhere close to what is already done in this Baltic country. There is technology, people who are willing to use new ideas, and most importantly, the legislation allows you to quickly implement an electronic innovation. In some countries these factors exist separately, but in Estonia they are gathered together.

It is clear that the development and introduction of its own cryptocurrency will take time and here is not a project for the weekend. But it's not for the long haul.

But once in Estonia can have its own cryptocurrency, then you can talk about the Initial Coin Offering (ICO). This process helps companies to raise funds to implement their own cryptocurrency. Examples of ICO for many, they spent a number of startups who believe that their coins are the best. Well, if so, why the Estonian government not to hold the ICO to avoid additional costs to implement such a project?

E-citizens gathered at a conference on e-residence

After all, those same entrepreneurs who are e-citizens of Estonia, may invest in this idea.

But how will work "astheny"?

Everything, as usual. Is ICO and then begins the formation of the cryptocurrency. There are several methods for implementing this plan, but they all eventually lead to (at least, so say the authors of the idea of introducing Estonian cryptocurrency) that benefit investors, that is, e-citizens, and the country itself.

Interest in this project has been expressed by many representatives of the sphere of cryptocurrencies. For example, the Creator of the "ether" Vitalik Buterin believes the idea is viable and ready to support it. He believes that with the new cryptocurrency, the country will receive significant support and will continue to develop.

"The ICO in the system of e-citizenship will help to create a strong system that, in addition to the economic aspect, will allow e-citizens to feel as a single unit because they are doing something together," said Buterin. He also added that since astheny will be part of the blockchain, that Estonia will be able to gradually introduce smart contracts, which will undoubtedly have a positive influence on business in this country and abroad.

Well, do astheny can serve as something of a "petroleum Fund of Norway", where the proceeds of oil trading with points to improve its value. It would be quite reasonable to create such a Fund. Again, it would have a positive influence on the economic situation in the country. Well, the country would have to invest in various promising fields, from the same smart contracts to artificial intelligence.

Astheny could be used as a means of payment — as a small business, and large, both inside the country and outside. On the basis of the Estonian cryptocurrency and blockchain it would be possible to create a robust digital infrastructure that is used simultaneously in many areas. Is e-government, voting system, banking, insurance etc. New cryptocurrency as e-citizenship, could go abroad and become an international phenomenon.

Overall, the idea is really interesting. It may well be that with digital citizenship, a new cryptocurrency will create a powerful hub of technology and Finance that will allow Estonia to move forward even more rapidly. Unfortunately, it is unclear when will be the cryptocurrency. Representatives of the government of Estonia say that now only presented the idea of creating a national cryptocurrency. This will be followed by a relatively long period of gathering opinions and feedback. And only then will the official presentation, and ICO, and all that with it all connected.


Tags: finances

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