e-Estonia, the Eastern European country that's investing in blockchain technology

It's a very particular combination of circumstances that has led to Estonia's trail-blazing ways and it all stemmed from the ending of Soviet rule in the early 1990s. Freed from the shackles of communism the country saw the unique opportunity to become the world's first "e-state" by establishing digital identities for all of its people.

Within this, everyone has a unique number which is used for everything from their tax records to their passports and which also acts as a digital signature that they can use to confirm bank transactions and even to vote in national elections.

Now, nearly two decades later, the wisdom of this innovation is becoming more and more obvious especially in the light of the digital disruption being caused by businesses like Amazon, Netflix and even PayPal. In the light of the ways that these have transformed their individual markets, many are predicting that banking will be the next sector to experience a similar transformation.

Perhaps the most obvious threat to the traditional world of banking comes in the form of cryptocurrencies like Bitcoin. It is a currency that is undoubtedly growing in popularity. This is underlined by the fact that its value seems to be on an almost constant rise with few signs of slowing down soon.

Naturally, the emergence of the Bitcoin has also led to the launch of a number of other cryptocurrencies including Ethereum, which can be traded on platforms like eToro. Ethereum is now the second largest of these currencies, as users see the value in investing in the technology.

Certainly on paper the wholehearted embrace of these new stateless currencies would seem to be a perfect match for Estonia. Lending even more weight behind this idea is also the concept of Estonian e-residency. In a bid to bolster the economy of a country whose population is shrinking rather than growing, in 2015 the government offered anyone in the world to become an e-resident which would entitle them to set up a business in the country and open a bank account.

Take up has been impressive with over 1,000 new companies being set up in under two years by a wide range of foreign nationals. With Brexit looming Estonia's status is likely to encourage even more to arrive. And in this effectively borderless country what could be more logical than a currency that is truly international, or not national at all?

So don't be too surprised if the Euro's days are numbered - in Estonia at least.

**This content is intended for educational purposes only, and shouldn't be considered investment advice. Only risk capital you're prepared to lose.