Estonia's Central Bank to Research if Blockchain Can Support a Digital Euro

Eesti Pank said the initiative will gauge the suitability of the KSI Blockchain, already used within the country's e-government system, in supporting a central bank digital currency.

AccessTimeIconOct 5, 2020 at 10:11 a.m. UTC
Updated Sep 14, 2021 at 10:04 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Eesti Pank, the central bank of Estonia, is undertaking a "multi-year" research project that will investigate the suitability of a blockchain-based digital currency to work alongside cash.

  • In a news release Friday, Eesti Pank said the initiative will gauge the suitability of the KSI Blockchain, already "a core" part of the infrastructure of Estonia's e-government system, in supporting a central bank digital currency (CBDC).
  • The research will be carried out with assistance from Guardtime, an Estonian company that developed the KSI Blockchain, and The SW7 Group, a London-based business development and investment firm with a focus on innovative technologies.
  • The work will further look at new payment solutions that might arise from the use of electronic identity and other Estonian e-government solutions, though it will be technology agnostic in its approach.
  • Eesti Pank said the research is being instigated as user habits are already changing regarding payments, and to assist research on a possible digital euro announced last week by the European Central Bank.
  • Estonia's experience running a digital form of government "gives us good grounds for launching a project to explore the technological frontiers of digital money," said Rainer Olt, head of the central bank's Payment and Settlement Systems Department.
  • Estonia joined the European Union in 2004 and adopted the euro at the start of 2011.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.