I live in a country that used to need that. The real reason for doing that is simply not having to write so many useless zeroes. The people who were calling for cutting zeroes were mostly banks having issues dealing with whatever hard-coded limit was on their systems. There was no expectation that cutting zeroes would actually improve anything at all.

Though the situation was exactly the opposite of Bitcoin. Money was losing value so the numbers were getting too big. Bitcoin is becoming too valuable so the numbers are getting too small.