Tunisia will be among the earliest country that takes bold action to implement its national cryptocurrency (E-Dinar). Russian ICO startup Universa will help issue and manage Tunisia’s Central Bank Digital Currency (CBDC); reported Russian news agency Tass on Nov. 7.
The First live CBDC?
The tech provider and underlying blockchain platform, Russia-based Universa, claims that this means Tunisia is the first country to issue a central bank digital currency (CBDC). Indeed, it is the first to announce that some of its capital has been converted to electronic form.
E-dinars are now available to transfer between citizens, with shops, cafes, and restaurants slated to accept the currency in several months. The central bank plans also to use it in cross-border payments, circumventing the need for US dollars.
The CBDC will be issued to consumers online and through two thousand kiosks, which will be set up in Tunisia. There, they can add funds to a digital wallet through a browser application or, in the future, a mobile app. Transfers are completed between people and businesses by scanning a QR code.
Founder and CEO of Universa Alexander Borodich, however, points out that this form of electronic money currency cannot be considered a true cryptocurrency.
The CBDC or e-dinar will be state-owned and backed by paper money. But the blockchain will not only protect against counterfeiting but will also make issuance cheaper and more transparent. Borodich said:
“Digital banknotes cannot be counterfeited — each banknote is protected by cryptography like its paper counterpart has its own digital watermarks. Furthermore, the production of such a banknote is 100 times cheaper than wasting ink, paper and electricity in the printing process.”
Thus, the country will not issue a new currency. Instead, part of its reserves will be simply moved to the platform and citizens will be able to exchange their physical money for e-dinars.
More countries are open to creating their National Cryptocurrency
Borodich expects digital currency to change how private banks operate. All the physical money will stay at the central bank, while commercial banks will only provide services and compete over the quality of the services offered.
Tunisia is not the first country that wanted to collaborate with Blockchain private firms on creating their national cryptocurrency. Of 7th Nov, as reported by Maishince Media, Ukraine is cooperating with the biggest Cryptocurrency exchange; Binance on setup the national cryptocurrency.
It’s reported as well that China is taking serious action on embracing blockhain technology and been expected by think thank to be the first country to launch it’s own digital currency.
Photo Credit: Merkle
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