The Bank of Ghana (BoG) is making another step towards the development of a central bank digital currency (CBDC) by partnering with a German currency technology provider.<\/p>\n
The BoG officially announced Wednesday that it signed an agreement with German banknote and securities printing company Giesecke+Devrient (G+D) to pilot a retail CBDC in Ghana, West Africa.<\/p>\n
As part of the agreement, G+D will provide its proprietary CBDC solution known as Filia to pilot the issuance of a digital form of Ghana\u2019s national currency, the cedi. The digital currency will be tested in a trial with local banks, merchants, payment service providers, consumers as well as other related parties.<\/p>\n
The project is part of Ghana\u2019s digitization strategy, the \u201cDigital Ghana Agenda,\u201d aimed at digitizing data and government services for the country of 30 million people. Also known as e-cedi, the digital cedi aims to complement the country\u2019s traditional national currency as a digital alternative. According to the announcement, the CBDC should facilitate payments without a bank account, contract or smartphone.<\/p>\n
BoG governor Ernest Addison said that the e-cedi provides a great opportunity to create a \u201crobust, inclusive, competitive and sustainable financial sector, led by the central bank.\u201d \u201cFrom 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,\u201d he added.<\/p>\n
Ghanaian Vice President Mahamudu Bawumia recently said that the African governments need to embrace digital currencies to facilitate trade throughout the continent. The official argued in late July that trade between African countries demands a \u201csingle central payment\u201d system.<\/p>\n