“Several countries have begun experimenting with the introduction of their own digital currencies, and China has even developed a prototype crypto-currency that could one day be put into circulation. However, Estonia has a clear advantage in this area due to its advanced digital infrastructure and its e-Residency program. No other country has come close to developing both the technology and the legal frameworks that would enable them to introduce and securely manage tradable crypto-assets globally,” Korjus’ post read.

What Korjus tentatively calls “Estcoin” could be launched through a so-called Initial Coin Offering (ICO) and managed by the Republic of Estonia, while being accessible to anyone in the world through the Estonian e-Residency program, he wrote.

While investing in any crypto-asset could come with high risks as well as high rewards, the holders of such Estcoins would have the added incentive of supporting the development of Estonia as a digital nation.

“We already know that many people become e-residents simply because they are fans of our country, our technology, and our ideas, and being an e-resident enables them to show their support,” Korjus said.

The funds raised with Estcoins could be managed by a public-private partnership and only used as specified in the agreement to actually help “build the new digital nation”. This would enable Estonia to invest in new technologies and innovations for the public sector, ranging from smart contracts to artificial intelligence, as well as make it technically scalable to benefit more people around the world, Korjus wrote in his post. Estonia could then serve as a model for the digital societies of the future.

In addition, a large proportion of the funds could be used as a community-run venture capital fund on behalf of investors. The money could then be used to support Estonian companies, including those established by other e-residents.

“Over time, Estcoins could also be accepted as a means of payment for both public and private services and eventually function as a viable currency used globally. By using our APIs, companies and even other countries could accept these same tokens as payment. It will also be possible to build more functions on top of the Estcoins and use them for more purposes, such as smart contracts and notary services,” Korjus added.