In recent developments, Tunisia has set a record by becoming the first country to launch its digital currency on the blockchain platform. On 7 November, a Russian news agency reported that the Central Bank of Tunisia has announced the digitization of the Tunisian Dinar.
Cost-Effective and Transparent
According to reports, a recently established Russian ICO firm, Universa, would help manage and issue the Central Bank Digital Currency (CBDC) of Tunisia. The Universa Blockchain would serve as the platform for the issue of the paper-backed CBDC. It has been further reported that Universa would also receive a percentage of the total transactions which would be carried in e-Dinar. The resulting ledger would be visible to Tunisia’s Central Bank.
However, Universa’s CEO, Alexander Borodich says that an electronic currency like Tunisia’s E-Dinar cannot be actually placed in the category of cryptocurrency.
Despite the E-Dinar not being a cryptocurrency, it would still enjoy the protection against counterfeiting provided by the blockchain, Mr. Borodich further stated. He also said that blockchain would make the issuance cheaper and more transparent.
Why Digital Currency Over Traditional Currency?
Digital banknotes cannot be counterfeited — each banknote is protected by cryptography like its paper counterpart has its digital watermarks. Furthermore, the production of such a banknote is 100 times cheaper than wasting ink, paper, and electricity in the printing process.
The e-dinar would be state-controlled and would be backed by the country’s paper money. Hence, it is not a new currency that Tunisia’s government is issuing, rather, it is using a part of its reserves for the blockchain platform. The citizens would be able to exchange their physical money with the E-Dinars.
Not a First Collaboration
For Universa, this is not the first collaboration it is engaging in. Before this, Russia’s railway system witnessed, Novotrans, one of Russia’s largest rolling stock sellers, collaborating with Universa for the digitization of the national railway infrastructure.