Estonian Central Bank Eesti Pank has announced the launch of a research program to study how to create an infrastructure for digital currency.

Eesti Pank has reportedly started cooperation with technology companies SW7 Group and Guardtime on a research project. It aims to see if a keyless infrastructure (KSI) blockchain solution can run its own virtual currency program. Estonia is already using KSI blockchain technology to provide e-government services. The bank project will also consider new payment solutions “that can be implemented using electronic identifiers and other solutions for Estonian e-government”.

However, the project does not specify which technologies to use.

The project will consist of several stages and will last for about two years. The first step will look at how to create a scalable, functional and secure platform that meets the demands of digital money. At the same time, the platform must also mark routes to ensure speed, security, privacy and resilience.

Rainer Olt, Chief Payments Specialist, said:

Eesti Pank, being a small central bank, carefully selects development projects of the eurozone central banks, in which we can make a significant contribution. Over the years, Estonia has accumulated unique knowledge of how to maintain a secure, private and efficient e-government. Estonia’s unique rich experience provides a good incentive to start a project with technology companies SW7 and Guardtime to explore technological possibilities. The latter is a long-term partner of Estonia in the blockchain field and is a leader in this field in the world. ”

The bank stressed that it is constantly working to develop the economic environment and payment system in order to keep up with the times and meet the needs of its citizens.

Estonia is leaning towards blockchain technology despite the recent criticism of its e-residency program for the involvement of cyber residents in fraud.

Last month Christine Lagarde, President of the European Central Bank, made it clear that the introduction of the digital euro does not mean an exception to the law.

Source: CoinTelegraph