Ghana plans pilot project for digital currency

0

Bank of Ghana (BOG) Governor Ernest Addison said the agency is now “at the advanced stage” of adopting a digital currency and has also warned of “unregulated” cryptocurrencies.

“I think there is a lot more emphasis on digital money supported by the state and central banks. These private forms of money are really not able to perform the functions of money effectively, ”he said during a press conference on Coindesk.

The West African country is nearing issuance of the digital cedi, but Addison said the process needs to come in three phases to ensure BOG maintains its reputation as Africa’s leader in adopting new financial technologies.

“You have to be phased with things like this, and the first phase was really on the design of the electronic money and the team, which has gone pretty far in the design phase, looks at the implementation phase,” said Addison. The next step will be a pilot phase “where some people could use the digital cedi in the mobile applications,” he added.

He said that Bank of Ghana was one of the first African central banks to declare that it was working on a digital currency.

Addison also said during a press conference that unregulated cryptocurrencies like Bitcoin are “too volatile to play the role of money”.

BOG recently teamed up with Emtech – a consortium dedicated to digital transformation – to launch a sandbox targeting blockchain, central bank digital currencies (CBDCs) and financial inclusion.

Serious discussions about CBDCs have gained momentum in smaller regions. For example, the Eastern Caribbean Central Bank (ECCB) introduced DCash, and the Central Bank of the Bahamas introduced the Sand Dollar, a digital currency backed by that country’s central bank.

Provide the development and use of CBDCs numerous risksincluding disintermediation, higher costs, volatility in deposit funding, and threats to financial anonymity. China has already proposed global mandates on how CBDCs work.

———————————

NEW PYMNTS DATA: DIGITAL BANKING STUDY – THE BREWING BATTLE, WHERE WE BANK

Above: Despite the great interest in these services, 47 percent of US consumers shy away from pure digital banks for data protection reasons. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to find out how digital-only banks can ensure privacy and security while providing convenient services to meet this unmet demand.

Leave A Reply

Your email address will not be published.