Estonia's central bank, Eesti Pank, has officially entered a research field of a central bank digital currency (CBDC).
According to a press release, the regulator started a multi-year research in collaboration with the tech companies Guardtime and The SW7 Group.
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The bank wants to find out how technologically suitable the Estonian e-government core technology "is for operating a central bank digital currency."
The regulator's aim is to investigate how the potential CBDC deployed on the KSI Blockchain, a core technology of e-government in Estonia, could be for operating the digital money infrastructure of a central bank. The project will also examine new solutions with digital ID and other Estonian e-government solutions, Eesti Pank added.
Eesti Pank Head of the Payment and Settlement Systems Department, Rainer Olt, says that the experiment provides the watchdog with good grounds for launching a project to explore the technological frontiers of digital money with the technology companies SW7 and Guardtime.
"Eesti Pank as a small central bank chooses carefully which Eurosystem development projects we are able to contribute too meaningfully. Estonia has over the years developed unique know-how in running a digital government that prioritises security, privacy and efficiency," Olt added.
iHodl earlier reported that Estonia’s E-Residency project, a borderless digital society for global citizens, became under fire over high interest among cryptocurrency scammers.
According to the Estonia Financial Intelligence Unit's (FIU) report, the program has been flooded with "suspicious initial coin offerings and the misappropriation of large sums within them."
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