Countries around the world are beginning to take a look at how they can incorporate blockchain into their operations and infrastructure. Some countries are taking an approach which could stifle innovation, such as China’s ban on ICOs. Some countries are seeking to aid innovators in their advances, such as Japan, Estonia, and Dubai.
Cryptocurrencies and blockchain tech can be applied to areas of government such as recordkeeping, infrastructure, and cross-border relations. Estonia is working with ChronoBank on the TokenEST program to create a digital country with digital ID and blockchain technology.
Currently under development are three possible tokens:
- Community estcoin: This option would reward users who bring new users to the platform, allowing the e-residency program to grow.
- Euro estcoin: A token which would be tied to the euro in value. This could be used for payments, sending money, giving gifts, and cross-border remittance among other use cases.
- Identity estcoin: These tokens would be limited in number and non-fungible, tied to a specific user. Token holders could use these tokens to verify their identity, allowing the E-Country to significantly reduce the cost and time requirements of identity checks. New ID estcoins could be purchased for the cost of generating them on the network.
Estonia claims to have the largest number of startups, per capita, or any country in the EU. Such an innovative mindset can allow regulators greater familiarity with agile industries, such as blockchain, as well as providing them the ability to adopt newer technologies into their existing frameworks.
What is TokenEST?
TokenEST is Estonia’s national program for adopting blockchain and cryptocurrency into their infrastructure. Estonia is partnering with crypto and blockchain projects from around the world to be advisors on their journey to integrate the new technology into their existing systems. This approach shows significant promise for blockchain regulations worldwide as regulatory oversight continues to grow.
How does an E-country work?
The E-country which Estonia is working to establish will allow startups and entrepreneurs to create businesses in Estonia without having to be present in the country consistently, via E-residence. E-residents are given a digital ID in the form of a smart card. Once the smart card is received, the E-resident can register a physical location and follow the necessary steps to fully register their business.
How are businesses developing in the new atmosphere?
According to the Estonia E-residency site, more than 4200 businesses have been registered in over 130 countries. Business owners and digital nomads can operate their businesses from around the globe without the need to physically be present in their home country to carry out actions such as borrowing and lending, receiving international payments, or sending international payments.
Businesses are turning to freelance talent with increasing frequency in order to acquire top-notch skills without having to pay consultants or train their existing employees on new skills. This new atmosphere is friendly to freelance talent as well as startups and legacy businesses.
Would you like to be able to be a resident of a country but not be confined by its geographical borders? Let us know in the comments below!