Bank of Ghana works on CBDC
As one of the first countries in West Africa, the Bank of Ghana is working with Giesecke+Devrient (G+D) to develop a digital central bank currency. Currently, this is still a pilot project, with much testing being done with banks, merchants, consumers and other payment service providers. Finally, the so-called e-Cedi is to be issued, which stands as a digital counterpart to the national currency, the Cedi. This was announced in an official statement.
In this regard, the digitization of payments is part of the Digital Ghana Agenda. In this program, the country’s 30 million inhabitants and its government services are to be completely digitized. Not only is the establishment of a digital structure crucial, but it is also meant to be a long-term robust.
The digital e-Cedi
The big advantage, which greatly improves the effectiveness of the payment system, is that payments can be made without a bank account. This is because it is also possible to use the digital services included in the e-Cedi via a smart contract or smartphone.
The project is divided into three phases:
- Pilot phase
In the first phase, the framework conditions for the CBDC are defined. Besides the economic and regulatory requirements, the technical ones are also of great importance. This is because the e-Cedi must be able to mirror the complete infrastructure of Ghana.
In the second phase, a CBDC solution is adapted by G+D to the previously defined concept.
Last but not least, the pilot phase begins. This involves the use of various test subjects. Besides demographic and socio-economic backgrounds, different channels or devices are used to test the digital e-Cedi.