by Vasilis Pazopoulos
Eventually, Tunisia seems to be the winner, as for the blockchain-based national currency! The "e-dinar", that is the first digital currency organized by a Central Bank, has just officially been issued.
The experimental phase has started and will last a couple of months, when the gradual replacement, of the current conventional dinars into the new e-dinar, will take place. It has already been carried out a transfer. A symbolic transfer of a dinar between Central Bank’s Governor, Marouane El Abassi, and a spokesman of the International Monetary Fund.
The new currency will be available online- to whom it may concern, while 2,000 kiosks will be set up in Tunisia. There, people will be able to get new money in a digital wallet through a mobile app, by scanning a QR code.
Electronic banknotes are much safer than any other banknote since they cannot be counterfeited. Moreover, the production of this kind of banknotes is much cheaper than a printed banknote. Neither ink nor special paper are needed.
But don’t be confused. The e-dinar is not a cryptocurrency. It is centrally controlled and not decentralized, such as Bitcoin. With all the disadvantages and advantages that it entails. However, a new era has dawned. Is that good? Is it bad? It is sure that the game terms have begun to change.
Which is the impact that digital block chain coins issued by central banks will have on Bitcoin? Undoubtedly positive. First of all, people will learn about Bitcoin. If block chain becomes part of our daily lives, it is sure that many more will learn about its existence. The second and the most important is its utility. As we had extensively mentioned, the authorities issuing this currency will gain an enormous power. The power of governments will be overwhelming. Consequently, there will be emerged temptations on increasing arbitrariness against citizens, whose only ’’defense’’ will be decentralized cryptocurrencies, such as Bitcoins.
Conditions are more favorable than ever. Bitcoin has stopped to be the currency of the illegal, marginal, dark web. It is recognized by respected institutions. It is officially traded on the New York Stock Market by Bakkt, governments and CBs deal with it, trying to understand and exploit it.
Another incident comes from the Central Bank of Canada, which has just published a survey on Bitcoin. We have the link for anyone who wants to get detailed information.
We will focus on two of the elements that stand out. The first is how ... the virus is spread. Every year more and more Canadians become Bitcoin owners. But still the rates are very low, which means that there is a lot space for development. And not only that. At the same time, its recognition is also increased.
The second and, perhaps the most important, is the reasons that someone buys Bitcoin. As we can see in the table below, in 2016 few considered it as a value saving asset. But this view has been reversed. In our opinion, that means that investors are maturing, are learning and that they are getting much more informed.
Things look favorable in medium term, but the view is different in short term, as for the crypto market. The 4 hour chart of total capitalization is pretty clear. As we have said, as long as the price is moving above the white line, then we have a positive indication for its course. On Friday, not only the price was below the line, but the attempts to rise again had found many difficulties. A clear indication of the inability of buyers to take over the reins. The second level of defense is the green horizontal line. Whether it will be maintained or not, it depends on multiple factors.
*First published in: www.euro2day.gr