Various countries mull issuing their own digital currency. To many people’s surprise, Tunisia has made significant strides in digitizing the domestic currency.
That is uncommon among Maghreb countries, yet it also presents new opportunities.
The E-Dinar Project Continues
It is a well-known secret Tunisia has some tough financial decisions to make. Either they issue additional paper money to offset electronic currency, or they take a different approach.
Based on the latest reports, it appears the latter outcome will come true. Government officials will allow users to switch between regular dinars and the E-Dinar once that is released.
Very little is known about the E-Dinar at this time. There are still a lot of kinks and aspects to be worked out.
Tunisia’s desire to create a digital currency is rather proactive. It would give the government more ways of tracing and protecting owners of this digital dinar accordingly.
Unlike paper money, electronic currency cannot be forged. Thanks to cryptography protocols, there are unique signatures and characteristics of each unit.
Moreover, going the digital currency route is cheaper, easier, and makes more sense in this modern age.
The success or demise of the E-Dinar will also affect other Maghreb countries.
Algeria, Morocco, and Mauritania are exploring similar options at this time. However, they aim to await the testing of electronic currency prior to joining this project.
As far as the testing period of this digital currency goes, a “symbolic” transaction has taken place already. One Dinar was moved from one account to another in digital format.
It is expected that the test will run for at least several months. Following that period, further functionality will be added.