E-Dinar expected to be more transparent and cost-effective to exhibit
The Tunisian central bank announced that the digitisation of the Tunisian dinar has begun and that the paper-based CBDC will be published on the Universa Blockchain. In addition, Universa is reported to receive a percentage of all transactions made with the “e-dinar”, while the general ledger will be visible to the country’s central bank. However, Alexander Borodich, the founder and CEO of Universa, points out that this form of electronic money currency cannot be considered a genuine crypto currency.
The CBDC or E-Dinar will be state-owned and paper money backed. The blockchain not only protects against counterfeiting, but also makes the exhibition cheaper and more transparent. Borodich said:
“Digital banknotes cannot be counterfeited. Each banknote is cryptographically protected, just as its paper counterpart has its own digital watermark. In addition, producing such a banknote is 100 times cheaper than wasting ink, paper and electricity during the printing process.”
Thus, the country will not issue a new currency. Instead, part of its reserves will simply be transferred to the platform, and citizens will be able to exchange their physical money for e-dinar.
The digital currency will change the way private banks work
Borodich assumes that the digital currency will change the way private banks work. All physical money remains with the central bank, while commercial banks only provide services and compete for the quality of the services offered. This is not the first cooperation between the Tunisian government and Universa. As Cointelegraph reported late last year, the government-led Tunisian Internet Agency signed a strategic partnership to provide services for the startup.
Meanwhile, as Cointelegraph reported earlier this week, the European Union is also considering issuing its own digital currency.