A Ghanaian blockchain and crypto association, Afroblocks, has warned the Bank of Ghana (BOG) to resist the urge to develop a central bank digital currency (CBDC) based on “old traditional isolated financial thinking”.
Afroblocks not consulted
Afroblocks (formerly Blockchain Society Ghana) instead wants the central bank to “imitate financial projects that are limitless and decentralized like modern cryptocurrencies”. According to Omar Majdoub, one of the club’s co-founders, this increases the likelihood of success for the CBDC.
These remarks by Majdoub of Afroblocks follow the recent release of a BOG press release affirming the central bank’s desire to be one of the first countries in Africa to adopt a CBDC. As recently reported by Bitcoin.com News, the BOG has selected a Germany-based company as a technology partner for its CBDC project. The Giesecke Devrient company has the task of “providing the technology and a solution that meet the requirements of Ghana”.
Despite the BOG’s apparent willingness to work with organizations that have the appropriate experience and expertise, Majdoub of Afroblocks claims that Afroblocks has not been consulted. Majdoub stated:
We have never been asked about this initiative, all the facts we know are contained in the BOG’s public publications. In fact, the public details on the CBDC are very sparse. We are happy to contribute our expertise if required.
Ghana’s unclear stance on cryptocurrencies
Meanwhile, Afroblock’s co-founder also suggested that the BOG’s ongoing failure to clarify “whether cryptocurrencies and decentralized finance will play a role in their upcoming CBDC” means the country’s stance on crypto assets will not change Has. Unfortunately, although Ghana does not officially regulate cryptocurrencies, this lack of clarity creates an atmosphere that is not crypto-friendly, laments Majdoub.
Despite the perceived snub, however, the Afroblocks leader gave the BOG some advice on what else the central bank needs to do to ensure the success of the e-cedi. Majdoub stated:
We would advise you to learn more about modern cryptocurrencies and contact crypto communities in Ghana and abroad. So that you can better integrate and take modern cryptocurrencies into your CBDC. Many young Ghanaians have found great opportunities in the exploding international cryptocurrency space.
Finally, Afroblocks urged the BOG to “make more information about the CBDC plans available to the public”. At the same time, the central bank must “make its intentions with regard to cryptocurrencies very clear”.
Do you agree that the BOG has to consult players in the blockchain space of Ghana? Let us know what you think in the comments section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.