Dr. Maxwell Opoku-Afari, the First Deputy Governor of the Bank of Ghana (BoG), has disclosed that significant strides have been made towards the introduction of the digital iteration of the Ghanaian cedi, aptly named the eCedi.
Speaking on the sidelines of the 3i Africa Summit at the Accra International Conference Center, Dr. Opoku-Afari expressed confidence in the progress made, noting that the pilot phase of the eCedi was met with success.
Dr. Opoku-Afari said “The introduction will be linked to the completion of necessary commercials. It will be done as the economic environment is right and stabilizing. The pilot was a success”.
Highlighting the importance of timing, Dr. Opoku-Afari emphasized that the rollout of the eCedi would coincide with favorable economic conditions, as the nation gradually emerges from recent challenges.
“I think we are moving into a space where we are beginning to consider the proper roll out of the digital currency. However, other indicators are currently being monitored before that decision is taken,” he explained.
Despite refraining from setting a specific timeline for the introduction of the eCedi, Dr. Opoku-Afari reiterated that the implementation would align with improvements in the economic landscape.
The move towards digital currency underscores the Bank of Ghana’s commitment to innovation and modernization in the financial sector. By embracing digital solutions, the central bank aims to enhance financial inclusivity, promote efficiency, and propel Ghana towards becoming a digital economy.
Background
In its pursuit of modernization and financial innovation, the Bank of Ghana (BoG) embarked on the ambitious journey of introducing the eCedi in 2022. However, challenges within the economic landscape prompted the regulator to temporarily halt its rollout.
Despite setbacks, the BoG remained steadfast in its commitment to fostering a digital economy, leading to the eventual resumption of efforts to introduce the eCedi.
The eCedi represents a groundbreaking initiative aimed at digitizing Ghana’s currency, offering a publicly-available digital form of fiat currency with legal tender status. At its core, the eCedi adopts a value-based approach, serving as a digital representation of traditional banknotes and coins. Payment transactions with the eCedi mirror the familiar process of cash payments, facilitating seamless transfers of digital value notes from one individual to another.
Central to the BoG’s vision for the eCedi are strategic goals geared towards advancing the digitization of the Ghanaian economy, fostering financial inclusion, and positioning the central bank as a proactive regulator in the digital era. By embracing digital currency, the BoG aims to enhance the efficiency, security, and resilience of the payment system while mitigating the risks associated with unregulated privately issued digital currencies or virtual assets.
The successful pilot rollout of the eCedi marks a significant milestone in the journey towards digital transformation. Dr. Afari, in describing the pilot’s success, revealed that the 3i Africa Summit, also known as The Innovation Village, exclusively utilized the eCedi for all transactions. “At this summit, we decided to demonstrate how it works by loading it on phones. All these measures are part of testing the digital currency before the full rollout,” Dr. Afari explained.
With the completion of the pilot phase, the Bank of Ghana is poised to advance commercial considerations surrounding the eCedi. The momentum generated from the successful pilot underscores the potential of the eCedi to revolutionize financial transactions, drive economic growth, and pave the way for a more inclusive and resilient digital economy.
As the BoG prepares for the full rollout of the eCedi, stakeholders eagerly anticipate the transformative impact of digital currency on Ghana’s economic landscape. With strategic foresight and careful planning, the eCedi has the potential to position Ghana as a leader in digital innovation and financial inclusion on the African continent and beyond.
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