Tunisia has announced the launch of its digital version of the national currency E-Dinar. A small North African country that became the first country in the world to issue the Central Bank Digital Currency (CBDC).
According to the Russian state news agency Tass, Tunisia has established a partnership with the Russian company Universa to distribute E-Dinar through Universa’s blockchain platform.
On the line, the Tunisian Central Bank Governor Marouane El Abassi and the representative of the International Monetary Fund (IMF) made a nominal 1 dinars transfer.
When everyone expected China to become the first country to issue digital currency, Tunisia ran out. Obviously, E-dinar is not a cryptocurrency, and it is significantly different from Venezuelan’s petroleum. Tunisia did not create a new currency such as a coin, but only digitized the existing currency.
In the next few months, people will be able to use E-Dinar in thousands of stores, cafes and restaurants. E-Dinar will be distributed online or at two thousand convenience points in the country.
In addition to making domestic transactions more convenient, Tunisia has an ambitious goal: to bring Dinar to the international arena. The Tunisian central bank wants to eliminate the need for dollars in cross-border payments.
Although Universa is a technology partner of E-Dinar, Tunisia may have given it too much power. The company will charge a certain percentage of the fees for each transaction made on the system. However, the company claims that it will not have access to any encryption keys and has no access to view transaction records.
Universa CEO Alexander Borodich believes that the cost is completely worthwhile because “electronic banknotes cannot be forged – just as each banknote has its own digital watermark, each digital banknote is password protected. The cost is 100 times cheaper than the ink, paper and electricity that the printer wastes.”
As more and more countries enter the digital currency field, the CBDC war will intensify. Malaysia, the Philippines, Argentina, Brazil and China are all developing their own digital currencies, and Singapore, Thailand and Canada are also seriously considering them.