Tunisia Denies “e-Dinar” National Digital Currency. What Would Have Been The Benefits?
Tunisia came under the spotlight and was heavily featured on cryptocurrency and Bitcoin blogs this week. The countrys’ rollout of a supposed digital version of its national currency the “Dinar” received widespread coverage in the crypto community over the past week. This would have been the first country in the Middle East, North Africa (MENA) Region to spearhead such an initiative.
Although the e-Dinar is not a cryptocurrency in the truest sense of the word, it provided an exciting use-case and blue print that other governments could have followed. Gradually, governments and central banks are not blind to the strides that cryptocurrencies are making.
The European Union has initiated preliminary discussions of laws as the backbone, in issuing a native digital currency the “Eurocoin”.
The benefits and the various use cases that comes from the launch of digital currencies is important and they are worth considering.
Measure of Checking Inflation
Governments and Central banks must have a firm grip on money supply on any economy. This makes it a constant juggle for many central banks. Issue too many currencies and inflation looms and too little money in circulation brings an economy to a halt. With Electronic money, central banks can monitor the movement of money in real time and make extra calculated decision with regards to money supply.
Cross Border Trade and Access
The launch of digital products aided by networks typically come with open access and rapid adoption. The telephone, internet and television were all forms of technology that opened up access the masses and proves the importance of networks.
Digital currencies facilitates payment across countries providing opportunities for traders within the Middle East & North Africa (MENA) region. Digitization of currency opens up trade. As a writer and marketer, I’ve received payments for my writing services in cryptocurrency and other digital financial assets by doing work for startups across the world. An opportunity which was not accessible to me in the past.
People can accept payment for goods and services across borders. Expanding the terms of trade leads to more employment opportunities for the country’s population.
Cash Light Economy
The printing of fiat currency and the minting of new coins cost money to produce. Digital currencies are produced/replicated at a fraction of the cost that is required in producing fiat currencies. This suggests the Tunisian government will save extra money that could have been used in issuing new fiat notes.
Carrying digital currency dramatically reduces the incidence of theft, robbery attacks and pilfering as fiat currencies stand a higher chance of being stolen.
Digital currency allows for people to comprehensively track their expenditure. A country with a healthy savings culture continues to be stable. With digital currency, users can actively track their expenses and all their expenditures.
Tracking Expenses
Tracking expenses allows people to actively make informed decisions about their finances because they can actively trace where and how they spend their money.
All these benefits are exciting of digital currencies are exciting.
As enthusiasts within the community who are looking to propagate the benefits of the Blockchain, initiatives like the e-Dinar would have been a perfect start to what could have been a sweeping revelation in how we view money and currency.
All the same, the Blockchain community will continue to spread the word about the benefits of this technology.
