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Estonia is known worldwide to be the digital country. It has offered the e-Residency for everyone who wants to apply for it and it wants to raise funds through an ICO.  On December the 14th, the Estonian government announced that it plans to raise $30 million euros launching an ICO named TokenEST ICO.

TokenEST ICO – Estonia’s Initial Coin Offering

Different start-ups and enterprises are running ICOs to raise funds and offer a new product. But it is not anymore solely for these actors. States are now using this new tools in order to profit from them a service for its citizens.

TokenEST will be an Ethereum-based ICO created by Estonia in collaboration with Chronobank. It is not the first time that Estonia has the idea to issue a cryptocurrency. In August, Kaspar Korjus, Managing Director at e-Residency, wrote in a blog that Estonia wanted to issue a national cryptocurrency.

“Investing in any crypto asset can come with high risks and high rewards, but holders of EstCoins would have the added incentive of supporting the development of our digital nation. There are several ways that the initiative can be structured, but it is important that EstCoin investors gain only when all of Estonia gains.”

TokenEST Estonia ICO

This project is backed by Ethereum’s founder, Vitalik Buterin, who believes that EstCoins would help Estonia to keep growing.  The intention with this ICO is to promote Estonia jurisdiction at international exhibitions and in the press, consulting of ICO start-ups, Assistance with launching start-ups on the TokenEST platform and provision of technical solutions and services among others.

Estonia has launched what they call e-Residency. This is a virtual residency card that allows individuals from all around the world to have different benefits. It allows to non-Estonians to have access to the banking system, payment processing and taxation. With a national cryptocurrency, the intention was to expand this e-Residency to other fields.

“Estonia has unique advantages as a small and digitally advanced nation. For example, we have a business environment that is attractive globally. We have one more important thing too because of our size – the ability to have a meaningful national conversation about why we should try new digital ideas,” wrote Mr Korjus.

European Central Bank – Can It Stop This ICO?

The European Central Bank (ECB) has several times stated that it was not going to accept a national cryptocurrency in the Eurozone. At CoinStaker we reported how the ECB is planning to regulate cryptocurrencies at the European level. Furthermore, ECB president, Mario Draghi has commented on the matter saying that the Euro is the only currency for Eurozone countries. It is not clear how Estonia will face this situation with the ECB against.

Vítor Costâncio, vice president of the ECB, said about cryptocurrencies:

“Bitcoin is an instrument of speculation but certainly not a currency. We do not see it as a threat to central banking of monetary policy.”

It is not clear how the European Central Bank will react against this ICO or how it will proceed. What it is taken for granted is that the ECB will not allow another currency to challenge the Euro in one or more member states.

Image Courtesy of Pixabay

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