The Estonian central bank will conduct research into the potential of digital currencies. It is, in a way, following other central banks, including the European Central Bank, which is moving in the same direction.
The Estonian central bank is examining the CBDC
Estonian central bank – Eesti Pank – announced the launch of a research program to test how to build a digital currency infrastructure.
According to statement, Eesti Pank will collaborate on a research project with technology companies SW7 Group and Guardtime. The initiative aims to test whether a blockchain-based keyless signature (KSI) solution can help create virtual currency.
It is worth adding that Estonia is already using blockchain and KSI technology in its e-government services. The bank’s project will also deal with new payment solutions, “Which may be possible through the use of electronic identifiers and other Estonian e-government solutions.”
Step by step
The project will consist of several phases and will last approximately two years. The first phase will be to create a scalable, practical and secure platform that meets the requirements of CBDC. At the same time, it was emphasized that the platform is to work quickly, securely and ensure privacy.
Rainer Olt, head of the bank’s Payment Systems Department, said:
“As a small central bank, Eesti Pank carefully selects development projects for the euro area central banks to which we can make a significant contribution. Over the years, Estonia has developed unique know-how in maintaining a secure, private and efficient eGovernment. Estonia’s unique wealth of experience is a good impetus to launch the project with technology companies SW7 and Guardtime to investigate [nowych] technological possibilities. “
The bank emphasized that it is constantly striving to develop its financial environment and payment system in order to keep up with the times and respond to the needs of citizens.
Estonia has long been interested in new technologies. This is the result of the cyber-war that the country endured when it was attacked by Russian hackers.
Last month, the president of the European Central Bank, Christine Lagarde, explained that adopting the digital euro does not mean giving up Fiat. However, she added that she is in favor of accelerating CBDC tests.