Estonia cancels cryptocurrency after ECB criticism

Estonia has canceled its plan to establish a national "Estcoin" cryptographic currency following criticism from European Central Bank President Mario Draghi and local banking authorities, Bloomberg reported on 1 June.

The general director of the Estonian e-residence program, Kaspar Korjus, had proposed the development and issuance of Estcoin in August of last year, set up by the state. In addition to becoming the national virtual currency of Estonia, Estcoin would officially become the official currency of the country's e-residence program. It would encourage foreigners who use Estonia's electronic identification to remotely sign documents and set up businesses.

"The currency of the euro zone is the euro"
Mr Draghi said in September, "no Member State can introduce its own currency; the currency of the euro zone is the euro ". According to Siim Sikkut, head of the country's IT strategy, the escoins will now only be given as incentives to e-residents. In an interview with Bloomberg, he explains:

"We agreed in discussions with politicians that the Estcoin will act as a means of transactions within the community of electronic residents. Other options are not on the table. We do not build a new currency. "

Draghi's position was supported by Bank of Estonia Governor Ardo Hansson, who complained about "misleading reports" on Estcoin by government agencies.

Governments and central banks in various countries have been exploring the potential of digital currencies issued by central or national banks. Earlier this month, Norway's central bank, Norges Bank, announced plans to develop its own digital currency as a supplement to its currency to "ensure confidence in the currency and the monetary system".