Tunisia became the first country to transfer its national currency into a blockchain platform. Russia's ICO Startup Universa will help issue and manage the Central Bank's digital currency (CBDC) to Tunisia, Russian news agency Tass reported on November 7th.
The electronic dinar is expected to be more transparent and cheaper to issue
The Central Bank of Tunisia has announced that the digitalisation of the Tunisian dinar has begun and that the CBDC paper will be issued on the Universa blockchain.
In addition, Universa will also receive a percentage of all transactions made with "e-dinar", while the general ledger will be visible to the central bank of the country.
However, the founder and CEO of the University, Alexander Borodich, notes that this form of electronic money currency cannot be considered a true cryptocurrency.
CBDC or e-dinar will be state-owned and will be backed by paper money. But not only will blockchain prevent counterfeiting, it will also make broadcasting cheaper and more transparent. Borodic said:
"Digital banknotes cannot be counterfeited: every banknote is protected by cryptography, just like its paper counterpart, which has its own digital watermarks. Moreover, the production of such banknotes is 100 times cheaper than the lost ink. , paper and electricity in the printing process. "
Therefore, the country will not issue new currency. Instead, some of their bookings will simply be transferred to the platform and citizens can exchange their physical money for e-dinars.
The digital currency will change the performance of private banks
Borodic expects the digital currency to change the way private banks operate. All physical money will remain with the central bank, while commercial banks will only provide services and compete for the quality of services offered.
This is not the first collaboration between the Government of Tunisia and the universe. As the Cointelegraph reported late last year, the Government-run Tunisian Internet Agency has signed a strategic partnership to host start-up services.
Meanwhile, as Cointelegraph reported earlier this week, the European Union is also considering issuing its own digital currency.