According to the Central Bank of Tunisia, the Tunisian dinar is being digitized, and Universa Blockchain will issue the paper-backed CBDC. Further, a percentage of all transactions done using the CBDC will be received by Universa, and the central bank of Tunisia will see the ledger.

Central Bank Digital Currency (CBDC) is an option considered by some countries. However, Tunisia has taken a step to move its currency (dinar) to a blockchain platform. Such effort makes the country the first to do so worldwide. The issuance and management of Tunisia’s CBDC (e-dinar) will be supported by a Russian ICO startup known as Universa. This was reported by Russian news agency Tass on November 7.

Alexander Borodich established Universa, and he is also the Chief Executive Officer. He noted that despite that e-dinar is an electronic money currency one cannot consider it an ideal cryptocurrency. According to him, the features of the blockchain will offer transparency, protection against counterfeiting, and, likewise, make it cheaper to issue.

Hence, there will be no issuing of a new currency in Tunisia,but the central bank will move some of its reserves to the platform, thereby allowing her people to exchange their physical money for e-dinars.

Borodich’s expectation is that digital currency should bringchanges to private banks’ operation. Physical money stays at the central bank, while commercial banks offer services with competition based on services’ quality.