In the last few years, there has been increased attention on the subject of countries launching their own national digital tokens as cryptocurrency has proven itself within the financial markets and many more people and world governments are seeing its benefits. One of the most prominent examples is China, who, allegedly in response to the upcoming Libra token, are launching their own national digital token. Other countries such as Canada, the Bahamas, and Turkey are reportedly working on their own token that will be launched at some point in the future as clearly, cryptocurrency is the way forward.
It was announced on November 7, 2019 that Tunisia will become the first country to begin moving their currency to a blockchain as a Russian startup will help develop their own E-Dinar that will launch in the near future.
This new development is a collaboration between The Central Bank of Tunisia and Universa, which is a Russian-based tech startup. With this new development, the central bank digital token will be released to the public via the Universa blockchain.
As part of the agreement, Universa will receive a percentage of every transaction that takes place using the blockchain and the public ledger will be available to the central bank of Tunisia at all times.
According to the founder and CEO of Universa, Alexander Borodich, this new development cannot be considered a pure cryptocurrency as it is. The use of the Universa blockchain will make the crypto easier to issue as well as cheaper and the token will be backed up by fiat currency.
“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,” he said.
Borrodich stated that this development means the country will not issue a new currency but will move its current reserves to the blockchain and that he believes that this is the future of finance, with central banks issuing the cash and private financial institutions providing valuable services to citizens.