In the wake of blockchain technology, the global landscape has experienced a paradigm shift, altering the way people perceive transactions, data security, and governance.
At the forefront of this revolution stands Bitcoin, the cryptocurrency that introduced the world to blockchain — an immutable, decentralized ledger. However, the impact of blockchain extends far beyond digital currency.
Blockchain’s versatility has found applications in diverse sectors, from finance and healthcare to supply chain management and voting systems.
Its decentralized nature ensures transparency and security, reducing the risk of fraud and manipulation. Now, governments are recognizing blockchain as a potent weapon against corruption.
In governance, blockchain promises unparalleled transparency and accountability. By utilizing this technology, governments can create immutable records of transactions, contracts, and votes, ensuring they remain tamper-proof and accessible to all stakeholders.
This innovation has the potential to curb corruption by eliminating intermediaries and enhancing trust in public institutions.
Moreover, countries like Estonia and Ukraine have already adopted blockchain for government services, streamlining processes and minimizing bureaucratic hurdles.
The ability to track public expenditure and enforce smart contracts holds immense promise in combating graft and ensuring efficient resource allocation.
In light of this trend, Ghana’s Vice President, Dr. Mahamudu Bawumia, has announced plans for Ghana to become the first blockchain-powered government in Africa in the fight against corruption.
Speaking at the 14th Regional Conference and Annual General Meeting of Heads of Anti-Corruption Agencies in Commonwealth Africa in Accra, Dr. Bawumia emphasized the potential of blockchain technology to enhance transparency and combat corruption within government operations.
The conference, attended by representatives from 20 Commonwealth African countries, focuses on strategies to deter corruption and promote economic growth through transparent governance.
During his address, Dr. Bawumia highlighted Ghana’s digital initiatives launched since 2017, highlighting their positive impact on the country’s development.
Dr. Mahamudu Bawumia highlighted several successful digital initiatives that have significantly improved public services and curbed corruption in Ghana.
One notable achievement is the ghana.gov portal, a centralized platform for electronic payment of public services. Since its launch in 2020, this portal has facilitated the collection of GHc201 billion, streamlining government revenue collection and reducing opportunities for corruption.
The digitalization of passport applications has also yielded impressive results. The Passport Office recorded a surge in applications from 347,000 to 752,000, while revenues soared from GHc12 million to GHc94 million between 2018 and 2023.
Furthermore, the integration of databases using the GhanaCard has had a profound impact on public sector accountability.
He said that by leveraging this unique identity system, the Controller and Accountant General’s Department identified and removed 29,000 ‘ghost’ pensioners from the payroll, resulting in annual savings of GHC480 million.
Similarly, the use of GhanaCard helped uncover 44,707 ghost beneficiaries on the National Service Scheme payroll, leading to savings of GHc356 million.
Digital Tools and eCedi
Dr. Mahamudu Bawumia urged Anti-Corruption Agencies in Africa to invest in digital forensics and specialized tools to track and disrupt corruption.
He emphasized the need for these agencies to acquire Customized Security Operation Centers (SOCs) to bolster their capacity to combat corruption networks effectively.
Dr. Bawumia also highlighted the potential for Ghana to enhance its anti-corruption efforts through the introduction of a Central Bank Digital Currency (CBDC), referred to as the eCedi.
“The eCedi will be our ultimate weapon in our fight against corruption because it will make it easy to track the movements of money and identify suspicious activities.”
Dr. Mahamudu Bawumia
He said it would also enable the Bank of Ghana to ensure high-level transparency and reduce the risk of fraud, tax avoidance, and money laundering.
While the introduction of blockchain technology in governance to check corruption is a laudable idea, CBDC such as the eCedi defeats the goal of decentralization of the financial system the reason the blockchain technology was developed in the first place.
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