Estonia's LHV Bank has partnered with Coinfloor, a UK-based bitcoin exchange, furthering its interest in the digital currency space.
Estonia has told the European Court of Justice that VAT should apply to the full amount of digital currency trades, according to a report.
The Estonian bank LHV will examine bitcoin bank services and the use of the block chain technology.
The organizers aim to promote bitcoin in the Baltic state, which has previously seen a tough stance from authorities.
The news follows a warning about bitcoin issued by a member of Estonia's central bank earlier this year.
The Central Bank of Estonia has warned bitcoin may be a "ponzi scheme", but is monitoring its growth.