Estonian Premier Open to Possibility of Launching National Crypto Token

Prime Minister of Baltic nation urges caution but does not dismiss the proposal for a national Estcoin.

Estonia’s Prime Minister has advised caution but displayed a willingness to consider the controversial possibility of launching a national crypto token, dubbed the Estcoin.

As per a report by Bloomberg, Prime Minister Juri Ratas stated during an interview in Tallinn that his cabinet has yet to seriously consider the Estcoin, which was proposed last year by a junior government official. However, he stated that while Estonia is “open to challenges”, such a venture would require the proper classification of the proposed financial instrument, as “financial regulation must be very thoroughly considered”.

The Estcoin was proposed last summer by Kaspar Korjus, who serves as managing director of the country’s e-Residency program. However, it drew sharp criticism from European Central Bank President Mario Draghi in September, who stated that the only currency of the Euro zone was the Euro.

Korjus offered a more detailed clarification in regards to his proposal last month, explaining that the Estcoin was meant to serve as a crypto token for the e-Residents of Estonia. The e-Residents are a “digital nation” of individuals from around the world who are allowed access to the country’s digital infrastructure where they can establish companies and manage them remotely.

According to Korjus, the Estcoin will serve as a way of attracting more e-Residents to establish companies in Estonia. He added that it was not being created as a new currency to rival the Euro.

However, despite this, the proposal has attracted a great deal of criticism from the country’s central bank and financial regulators, who worry the controversial project might tarnish Estonia’s reputation.

While Ratas did not dismiss the idea entirely, he did urge caution in regards to the manner of its presentation.

“As concerns new financial instruments, we have to be very careful on this,” he said. “The initiators will have to describe what they have in mind.”