The president of the European Central Bank has shut down any plans for the Estonian government to issue its own cryptocurrency. In a statement, President Mario Draghi said that the euro would remain as the only currency in the eurozone.
Estoniaâs cryptocurrency plans have been put on hold due to criticisms from the European Central Bank (ECB). The small nation was planning on issuing a digital currency which would be offered to the countryâs 20,000 e-residents. However, this proposal has been shut down by the central bankâs president.
SponsoredâThe Eurozone Is for the Euroâ
President Mario Draghi was explicit in his condemnation of Estoniaâs cryptocurrency plans. âNo member state can introduce its own currency⊠the currency of the eurozone is the euro,â he said during a press conference.Â
The so-called âestcoinâ was first proposed by Kaspar Korjus, the head of Estoniaâs e-Residency program. The Estonian government is still actively considering the proposal, but the recent pushback has been discouraging. The e-Residency project is now seeking feedback online on how to best proceed.
The European Central Bankâs comments should come as no surprise given the hysteria surrounding cryptocurrencies in the eurozone as of late. The EBC has been worrying that their rising popularity could pose a threat to the supply of sovereign currency and overly-complicate markets. In effect, the central bank would effectively forgo a large part of its jurisdiction if cryptocurrencies became common, legal tender.
ECB Feels the Pressure
The recent condemnation by the EBC is the most damning dismissal of Estoniaâs cryptocurrency plans to date. Thus far, no other eurozone nation has proposed a similar idea.
However, with China on the precipice of releasing its version of âdigital money,â it seems that the topic will inevitably be on the table today. Soon, the ECB will be forced to keep up with the changing times.
Do you believe that Estonia will eventually be able to pass its digital currency idea despite the ECBâs criticisms? Let us know your thoughts below in the comments. While youâre at it, check out our guide on the best cryptocurrency exchanges for trading Bitcoins.
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