Ghana’s Central Bank Digital Currency ‘eCedi’ Will Revolve Around Financial Inclusion

Ghana’s central bank has released information about its ‘eCedi’ digital currency, which it hopes will encourage more people to use the country’s banking system.

The Bank of Ghana has released a digital paper advocating for hardware wallet services for Ghanaians who do not have internet access or bank accounts.

The West African country is developing a national digital currency based on blockchain technology in order to digitize its economy and reduce corruption. The Ghanian government first mentioned eCedi last year in 2021.

“The Bank of Ghana announced its intention to investigate the formation of a CBDC as part of the financial sector digitalization program.” “It is in pursuit of this goal that the Bank of Ghana announced the concept of the eCedi — a digital version of the Cedi banknotes and coins,” said Dr. Ernest Addison, governor of the Bank of Ghana, in the digital currency’s introductory message.

A CBDC is similar to cryptocurrency in operation, but it is built on a blockchain network and is virtual in nature. CBDCs, on the other hand, are regulated by central banks, making their transactions centralised and traceable for a single authority, as opposed to traditional cryptocurrencies, which are decentralized.

“In Ghana, the motives include a combination of factors such as financial inclusion, the pursuit of a cash-lite economy, improving operational efficiency and cost-effectiveness in payments, and the provision of a safe, secure, and trustworthy alternative to privately issued digital currencies,” Addison explained.

CBDCs have recently gained popularity in a number of countries that want to experiment with blockchain technology without dealing with the volatility and risk factors associated with cryptocurrencies.

Jamaica, for example, is moving quickly toward the launch of its CBDC, Jam-Dex. As an incentive, the Jamaican government will give $16  to the first 100,000 Jam-Dex users.

Meanwhile, Russia has already begun testing its Digital Ruble CBDC.

In India, Finance Minister Nirmala Sitharaman has confirmed that a national digital rupee will be introduced in the coming days.