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- According to a Bloomberg article on Monday, Ghana wants its central bank digital currency to function offline
- He also proposed that a CBDC that could be utilised offline may be a solution to the problem
- The Bank of Ghana has been intending to issue another CBDC since 2019, and stated that it was in advanced stages
Ghana wants its central bank digital currency to function offline. CBDCs are digital versions of a jurisdiction’s legal tender that are intended to be used on cell phones.
The country’s digital currency, the e-cedi, would function offline through the use of smart cards, according to Kwame Oppong, director of the Bank of Ghana’s fintech and innovation department. Smart cards, like current bank cards, with a chip inserted in them. Oppong noted that efforts to offer financial services to individuals without bank accounts are hampered by the availability of connection and power at the Ghana Economic Forum, on Monday.
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He also proposed that a CBDC that could be utilised offline may be a solution to the problem. They actually expect to be able to accomplish that they are one of the pioneering bodies and thus should be able to utilise the e-cedi in an offline environment using certain smart cards.
Oppong said that according to recent news, China may be experimenting with a smart card based solution for digital Yuan. In this, the users may move their digital money straight from bank accounts to an offline payments solution offered by the global financial services giant Visa in the beginning of this year, and might lead to double spending or even counterfeiting.
The Bank of Ghana intends to issue another CBDC since 2019, and stated that it was in advanced stages. Ghana stated in July that the e-cedi will be piloted in September, but it has yet to begin. CBDCs are being studied by more than 80 countries across the world.
Nigeria is preparing to launch its e-Naira, while the ECB launched a two-year trail of a digital euro in October. The Bank of International Settlements (BIS) recommended that central banks begin working on CBDCs as soon as possible, particularly in view of the growing crypto and stablecoin sectors.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
