The Governor of the Bank of Ghana, Ernest Addison, has explained that the nation’s central bank digital currency (CBDC), the eCedi has the potential to bridge the financial divide in the country.
Currently in a pilot phase since Sept. 2021, the eCedi aims to provide universal access to banking services, he said.
- According to Addison, the eCedi empowers individuals without traditional bank accounts to access financial services through digital platforms and mobile devices.
- He explained that the offline version of the eCedi is an additional feature that allows consecutive payments even without connectivity, further enhancing financial inclusion.
- He added that once fully implemented, the eCedi will offer a range of products and services to make financial inclusion a reality for everyone.
What was said
- According to Addison, the eCedi will have numerous benefits. It will enhance cross-border trade and accelerate financial inclusion by providing cheaper and faster remittance inflows.
- Additionally, it will facilitate targeted social interventions and improve the effectiveness of monetary policy, payment systems efficiency, and tax collection.
What was said
“The E-Cedi will serve as both a medium of exchange and a store of value, offering better payment prospects in retail transactions when compared to cash payments,” Addison said.
A quick catch-up
- In 2021, the Bank of Ghana unveiled its plans to develop the eCedi and even released a design paper.
- Later that year, the Bank started testing the offline version of the eCedi in Sefwi Asafo, a small town in southwest Ghana. The test specifically targeted Ghanaians without internet access and involved using smart cards, watches, and wristbands.
- Despite a successful pilot, the launch has been delayed due to several factors, including economic concerns such as rising inflation and the depreciation of the cedi.
- Recently, the Bank of Ghana, in collaboration with EMTECH Solutions, launched a 12-week hackathon. Fintech experts, developers, and innovators came together to explore innovative ideas for the possibilities of Ghana’s eCedi.