Dr. Ernest Addison, the Governor of the Bank of Ghana, has hinted that the Bank of Ghana (BOG) has commenced a piloting process for a Central Bank Digital Currency (CBDC) to further move the economy towards a cash-lite environment.
According to Dr. Addison, this is part of the Bank’s efforts to bring innovation into the financial sector to improve financial inclusion as well as move the economy faster towards a cashless economy.
“We anticipate that the Bank’s CBDC project would further advance financial inclusion, promote the efficiency and stability of the payment system, and foster competition in the financial sector”.
Dr Addison made the remarks in a keynote address at the Ghana National Chamber of Commerce and Industry (GNCCI) Chief Executive Officers Business Forum in Accra.
Meanwhile, the BOG Boss highlighted that the pandemic has provided additional impetus to the financial digitisation agenda to improve business transactions and enhance growth.
Merging the biometric National Identification systems
Also, the Governor highlighted the significance of merging the biometric National Identification systems with other national databases. According to him, the move will enhance transparency and facilitate seamless transactions in the country. Moreover, he noted that the merging of the databases will reduce the cost of doing business, and broaden the scope of Ghana’s economy-wide digitisation process.
Furthermore, Dr Addison stated that the Bank had set up a regulatory sandbox to further accelerate the pace of evaluating innovation in the country. According to him, this will allow innovators such as banks and payment service providers to develop a variety of new product innovations and business models to address market gaps and consumer needs on time.
Dr. Addison highlighted several initiatives as well as structural reforms that the Central Bank has rolled out over the years. He further explained that the aim of all those policies and structural reforms is to reposition and improve business competitiveness for future growth.
As a result, the Governor believes that these initiatives will enable businesses to leverage emerging opportunities, especially those under the African Continental Free Trade Area (AfCFTA).
Moreover, he noted that those supportive policy measures and regulations would also position Ghana as a competitive destination for other African businesses and investors.
Continuous policy support for businesses
The Governor pledged that the Central Bank would continue to implement policies and pursue reforms that would improve the credit environment for businesses. This, according to him, will help engender sustainable economic growth in the long-run.
Also, Dr. Ernest Addison, indicated that the Bank will continue to provide strong policy support for growth recovery and the economic revitalization process under the CARES program.
Highlighting the direction of future policies, the BOG Boss indicated that the Bank will design both monetary and financial sector policies to anchor the disinflation process. These policies will also create supportive frameworks for credit enhancement and the enhancement of the financial digitisation process. In a nutshell, Dr. Ernest Addison said these policies will help “support businesses and overall economic growth”.
The Forum was on the theme: “Redefining Business Success: The path for Business Value, Resilience and sustainability”. It provides a high-level platform for CEOs, Entrepreneurs, Industry Experts and Policy Makers to deliberate on topical issues in the country. The panelists also made policy recommendations for the sustainable growth and development of businesses in Ghana as well as explore new business partnerships.
