Ghana’s central bank has outlined details of its digital currency ‘eCedi’ which it hopes will bring even more people into the nation’s banking system. The Bank of Ghana has presented a digital paper advocating hardware wallet services for Ghanaians who do not have internet access and a bank account. The West African country is planning its own blockchain-based national digital currency to digitize its economy and prevent corruption. eCedi was first mentioned by the Ghanaian government last year in 2021.
“The Bank of Ghana announced its intention to explore a CBDC within the framework of its program to digitize the financial sector. Pursuing this goal, the Bank of Ghana has announced the concept of eCedi – a digital version of Cedi banknotes and coins,” said Dr Ernest Addison, Governor of the Bank of Ghana in introductory message of digital currency.
ONE CBDC works very similar electronic moneybut built on a blockchain network and is virtual in nature. However, CBDCs are regulated by central banks making their transactions centralized and traceable to a single authority, as opposed to the decentralized nature of traditional cryptocurrencies.
“In Ghana, motives include a combination of factors such as; Facilitating financial inclusion, pursuing a cash economy, improving operational efficiency and cost-effectiveness in payments, and providing a safe, secure and affordable alternative trusted for privately issued digital currencies,” noted Addison.
In recent times, CBDCs are gaining popularity in a number of countries that want to explore blockchain technology without having to deal with the volatility and risk factors associated with cryptocurrencies.
Jamaica, for example, is moving fast towards the implementation of a CBDC named Jam-Dex. The Government of Jamaica will donate $16 (approximately Rs. 1,200) as a encourage for the first 100,000 people to use Jam-Dex.
Meanwhile, Russia has begun testing a CBDC named Digital ruble.
In India, the Minister of Finance Nirmala Sitharaman also confirmed the plan to bring a country digital rupee in the coming days.
