Monday, January 8, 2018

Estonia to defy the EU by being the next country to create a state backed cryptocurrency

As with Poland's defiance against Germany and Brussels over forced acceptance of Islamic refugees, there appears to be another country that is willing to give the middle finger to the EU's agenda for complete dominion over the nations within the coalition.

According to the Maastricht Treaty, all full and ancillary members outside of three that negotiated the use of their own currencies are obligated to use the Euro as their sole and primary medium of exchange.  This of course is now being challenged by the advent of decentralized cryptocurrencies, which at this time have yet to be ruled upon by the ECB or European Commission.

However one ancillary nation, that of Estonia, is challenging the EU's mandate that countries must use the Euro currency alone in both trade within the EU and also within their own domestic economies.  And Estonia is looking to do so with the creation of a sovereign or state backed cryptocurrency known as the Estcoin.

In August Estonia’s director of e-Residency, Kaspar Korjus, floated the idea of an official Estonian cryptocurrency. 
The European Central Bank president responded with disapproval, saying that the euro is the only currency allowed for nations in the European Union. 
But Korjus’ latest post says that the country is moving forward with a cryptocurrency, and the new proposals do not conflict with the euro. 
Estonia’s e-Residency office outlined three specific proposals for how the country could develop a cryptocurrency. They welcome input from e-Residents, as well as Estonian citizens, and anyone else interested in cryptocurrencies. 
Estonia’s e-Residency program does not grant actual residency to participants. It offers an online identity with the aim of streamlining international business. Anyone in the world can apply, and gain access to online tools which help them better serve European customers. 
Since Korjus’ August blog post, many cryptocurrency enthusiasts have joined the program, hoping the platform will help them invest in and use cryptocurrencies. Others are interested in the potential for the e-Residency program to help launch and legitimize ICOs (Initial Coin Offerings). 
Korjus has proposed three possible digital tokens that could serve e-Residents.
One proposal would use the cryptocurrency to incentivizes use of the e-Residency platform. It would reward contributors, and facilitate transactions within the online e-Residency portal. This is the online platform which offers business tools to e-Residents. Korjus says the cryptocurrency could be used among e-Residents to trade, for example, legal and financial services. 
A similar proposal would tie the cryptocurrency’s value to the euro, and limit its use to the e-Residency community. E-Residents would change their euros into tokens which they could use on the platform. Individuals could redeem tokens for euros at any time, without risking a change in token value. 
The third proposal would make the tokens less of a cryptocurrency, and more of a secure online identity used to access certain tools in the e-Residency portal. Your online identity would be tokenized and added to the blockchain. In the same way that you can track each individual Bitcoin preventing duplication, tokens attached to your identity could prevent online forgery. - Zerohedge
While Venezuela attempts to replace the Bolivar completely with a resource backed sovereign cryptocurrency, Estonia is doing things differently by dedicating its crypto for use completely on the internet through an eResidency community. 


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