Estonia Downscales National Cryptocurrency Plans

The Eastern European country downscales its national cryptocurrency plans following a significant number of criticisms.

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It seems that Estonia would not be launching a “national cryptocurrency” after all as its plans came under fire from Mario Draghi and the country’s local banking authorities.

According to Siim Sikkut, the man in charge of Estonia’s IT strategy, the country’s plans to peg their cryptocurrency to the Euro and to offer the tokens to all its citizens were dropped. The digital tokens will instead be used as incentives to their e-residents—foreigners using electronic identification in order to sign documents and start companies in the country.

The Estcoin was criticized by Mario Draghi because he, along with Estonia’s Central Bank Governor Ardo Hansson, believe that only the Euro can be dubbed as a national currency. In September of last year, he explained that no member state can create and introduce its own currency—this includes cryptocurrencies.

In response, Sikkut said:

“We agreed in discussions with politicians that Estcoin will proceed as a means for transactions inside the e-resident community…Other options aren’t on the table. We’re not building a new currency.”

This was supported by Estcoin plan author Kaspar Korjus when he confirmed that Estcoin would “definitely not be a national cryptocurrency.”

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