TDN Initial Issue
TDNs are issued when a request for TDN withdraw is received by the Central Bank from a member bank. The TDN is created on the TDNSYS, sent to the Bank and the reserve account of the Bank with the Central Bank is debited for the TDN's value. This is similar with a Bank requesting paper money from the Central Bank.
Each Retail Bank has a digital certificate issued by the Central bank. The public key of this certificate is set for all the TDNs issued to the bank. When requesting a TDN the Retail Bank system has to satisfy a SSL/TSL challenge initiated by the TDNSYS with the bank’s certificate.
Only Retail Banks may be issued and may redeem TDNs Most of the time a Bank will request a large value TDN and split smaller value TDNs as needed and when redeeming it will consolidate multiple TDNs into a larger TDN.
The transfer of paper money from the Central Bank location to the Bank's safe is infinitely
nore complicated than the instant transfer of TDNs.
Comparing to storing paper money TDNs storage is less expensive and as safe if not safer than bank safes.
And TDNs of course fo not require an Over Night Drop Box.
