Pricewaterhouse Coopers (PwC) has revealed that Ghana’s banking industry positively affirms the great potential of benefits Ghana’s economy stands to gain by embarking on the central bank digital currency (e-Cedi) project.

In PwC’s 2021 banking survey report titled ‘Digital Currencies: Is the Ghanaian Banking Sector Ready?’, Senior Executives of 20 out of the 23 banks currently operating in the country were interviewed.

The survey sought to find out whether the Senior Executives have some level of “awareness, knowledge, and readiness for the e-Cedi”.

Findings from the survey revealed that “95 per cent banking executives agree that the digital currency would impact the banking sector and wider economy positively”.

This impact, the Senior Executives iterated, will be experienced through a “deepening of financial inclusion, providing additional thrust for the country’s digitisation agenda, and improving execution of monetary policy via enhanced control over money supply”.

Touching on the eagerness of the Senior Executives in anticipation of the e-Cedi, the survey disclosed that “75 per cent of senior bank executives interviewed also expressed enthusiasm at the prospects of process optimisation and bigger e-ticket transactions, which can lead to enhanced credit delivery and financial intermediation”.

In light of concerns raised about cybersecurity, the survey revealed that 85 per cent of the Senior Executives emphasised the need for BoG to ensure that confidentiality, data privacy and security among others are considered in the design of the e-Cedi.

This, the Senior Executives hinted, will help to build the needed trust required to encourage Ghanaians to fully embrace the digital currency when it is fully launched.

“60% of bank executives are of the view that the role that the central bank plays in the e-Cedi project will determine – in a significant way – the success or otherwise of the e-Cedi.”
PwC

Roadmap to rollout the e-Cedi

Mr. Vish Ashiagbor, Country Senior Partner, PwC, describing the central bank digital currency said, “the e-Cedi project is expected to go through design, pilot, and rollout (implementation) phases”.

“The design and pilot phases are meant to help design and build, through a rigorous solutioning process, a robust platform that aligns to the country’s economic, regulatory and technical requirements.”
Mr. Vish Ashiagbor

In anticipation of the full rollout of the central bank digital currency, Mr. Ashiagbor disclosed that the Bank of Ghana “plans to conduct an evaluation of the pilot to determine user acceptance, infrastructure securities, impact on monetary policy and the payments system, as well as any legal implications associated with the digital legal tender”.

Expressing his appreciation of the methodology employed by the central bank, Mr. Ashiagbor revealed that he commends BoG’s approach of learning from other successful stories of issuing out central bank digital currencies in order to modify its own.

The banking industry, in events leading to the full launch of the e-Cedi looks forward to strategic consultations and dialogues with the central bank.

“95% of survey respondents expect the central bank to involve the [banking] industry in the development of legislation and regulations governing the e-Cedi, while 80% expect BoG to consult the industry in determining the pricing structure for e-Cedi based products.”
PwC

In the meantime, results from the survey indicates that the rise in mobile money penetration in the economy should guide BoG in the design of the e-Cedi.