The Bank of Ghana (BOG) has signed an agreement with Giesecke Devrient (GD) to implement a pilot project for the digital currency of the Central Bank (CBDC). This pilot CBDC, a forerunner of the digital currency e-cedi, is to be tested with banks, payment service providers, merchants, consumers and other relevant stakeholders.
Learning from the trial phase
In a press release, the Ghanaian central bank says that GD will provide the technology and a solution that meets Ghana’s needs. The press release goes on to say that a study will also be carried out during the test phase that deals with the “acceptance of e-Cedi from the end-user perspective”.
The impact of the pilot CBDC on monetary policy and payment systems as well as the legal implications will be assessed. In return, the BOG says that it will use valuable knowledge from the experiences of pilot users when the e-cedi is finally introduced.
Ghana’s CBDC mission
The press release quoted BOG Governor Ernest Addision, who raised the potential impact of e-cedi on Ghana’s economy and how his country is determined to use it. He said:
[The] CBDC offers a great opportunity to build a resilient, inclusive, competitive and sustainable financial sector led by the central bank. All in all, the concept plays an important role in the future of global financial service provision. This project is an important step in enabling Ghana to take full advantage of this emerging concept.
Meanwhile, the BOG says in its press release that the CBDC pilot project is part of the “Digital Ghana Agenda”, an initiative that includes “the digitization of the country of 30 million people and its government services”.
The e-cedi, on the other hand, is intended to serve as a digital alternative to physical cash. It also aims to facilitate payments without a bank account, contract or smartphone, thus promoting the use of digital services and financial inclusion among all population groups.
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