The central bank of Ghana reveals the key triggers that led it to plan the issue of central bank digital currency (CBDC). The document outlines the design of the digital currency along with its benefits for the Ghanaian economy.
In 2021, the Bank of Ghana (BOG) started the development of its CBDC, and it was expected that before the year-end, it would begin piloting the digital currency. As per the reports released in August 2021, the BOG declared Giesecke Devrien as its implementation partner.
Before that, Mahamudu Bawumia, the vice-president of Ghana, had applauded the central bank’s plan to issue the digital currency. He even forecasted a hike in intra-Africa trade because of such a currency.
Meanwhile, some blockchain lobby groups, such as Afroblocks, claim that they were not consulted – demand from the central bank to design a digital currency that is created on “old traditional siloed financial thinking.” Afriblocks argues that if it is done that there are higher chances of success.
Ernest Addison, the BOG governor, released a statement along with the documents, responding to the concerns raised by critics. Addison affirms in the statement that the BOG will try to engage stakeholders till the point where they can do active participation and successful implementation.
Financial Inclusion Among Strategic Goals
Further in the document, the BOG states that it believes CBDC is important for a progressive and digitally inclusive society. In addition, it says that with the digital currency, they aim to achieve its strategic goals, among which one is promoting financial inclusion.
The document notes that the design principles of the e-Cedi, particularly consecutive offline payments, and accessibility, will be contributing to the objective of the government of creating a digitized Ghanaian society and fostering financial inclusion.
Helping the economy to digitize the economy and improving the consumers’ adoption of digital payments are among the other strategic goals that need to be achieved by digital currency. Further, the BOG claims that the e-cedi will also address the threats due to the “unregulated privately issued digital currencies.” Meanwhile, a digital cedi will meet the demands for digital “currencies without posing systemic risks.”
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