Ghana Central Bank Embarks On CBDC Journey

Table of Contents

• Ghana Goes Digital
• Promising Tech Support From G+D
• CBDC On A Roll Now

The Bank of Ghana has signed a contract with Giesecke+Devrient (G+D) to run a pilot Central Bank Digital Currency (CBDC) program in the West African country. 

Ghana Goes Digital

The decision behind the CBDC program was informed by the country’s new cash-lite agenda and their digital Ghana initiative that would involve the digitalization of 30 million Ghanaians and the country’s entire government services. The project will also act as a precursor to issuing a digital form of the national currency, the Cedi, known as e-Cedi. 

According to a statement made to LEADERSHIP, 

“[The program] also aims to facilitate payments without a bank account, contract, or smartphone, by so doing boosting the use of digital services and financial inclusion amongst all demographic groups.” 

Dr. Ernest K.Y. Addision, Governor of Bank of Ghana, stated,

“CBDC presents a great opportunity to build a robust, inclusive, competitive and sustainable financial sector, led by the Central Bank. From all indications, the concept has a significant role to play in the future of financial service delivery globally. This project is a significant step towards positioning Ghana to take full advantage of this emerging concept.”

Promising Tech Support From G+D

To develop a custom CBDC solution best suited for the country’s requirements, G+D is providing the technological support known as Filia. It will enable the merging of cash advantages with user needs, along with providing tight security, easy accessibility, and high resilience, along with regulatory compliance and data protection. Additionally, the program is also promising secure offline payments, even without an internet connection.

The program will first go through a soft launch/testing phase, where it will be tried out by banks, payment service providers, merchants, consumers, and other involved parties. 

Dr. Wolfram Seidemann, CEO of the G+D Currency Technology business sector, commented, 

“Central Banks around the world are exploring the introduction of digital money as legal tender. The Ghanian government is one of the first African countries now entering a pilot phase. We are proud to support Ghana with our technology and expertise.”

CBDC On A Roll Now

Ghana is the latest in a line of countries whose central banks have chosen the CBDC way. Several national financial organizations have already released their CBDCs, with many more launching their own projects. Recently, the Bank of Jamaica announced the launch of their first CBDC, which is being issued to deposit-taking institutions and authorized payment service providers. The Bank of Korea had launched a pilot program to test out CBDC as well, with Samsung joining the project to test its viability on the latest Galaxy smartphones. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.