The Governor of the Bank of Ghana, Dr. Ernest Addison, has emphasized the critical role of efficient payment systems in bolstering economic stability. He stated, “Payment systems are critical to the efficient functioning of economies. They bolster the role of money as a means of exchange and are of paramount interest to central banks.”
His comments follow the successful completion of the Bank’s pilot project for its Central Bank Digital Currency (CBDC), known as the eCedi.
Governor of BoG
The pilot project was conducted in a sandbox environment to test the feasibility of issuing and accepting a digital form of the Ghana Cedi, aligning with the Bank’s commitment to advancing Ghana’s digital transformation agenda since November 2019.
The eCedi aims to enhance financial inclusion, provide a digital alternative to cash, and improve payment efficiency across the economy.
Dr. Maxwell Opoku-Afari, First Deputy Governor, acknowledged the pilot’s success while stressing the need for economic stabilization before fully launching the eCedi. He stated, “It is imperative that economic stabilization is prioritized before initiating a new venture such as this. However, our goal is to be fully prepared to navigate any challenges that may arise.”
First Deputy Governor of BoG
Implemented in partnership with Giesecke+Devrient (G+D), the pilot utilized the G+D Filia retail CBDC technology, which was adapted to the Ghanaian context after extensive consultations with financial service providers, merchants, and consumers.
The pilot involved three phases, with the final phase dedicated to field testing the solution.
The Bank’s strategy employs a two-tier distribution model, positioning itself as the issuer and wholesale distributor of the eCedi, while financial service providers (FSPs) manage retail distribution.
These FSPs also developed mobile applications for online transactions, allowing users to execute peer-to-peer transfers and make payments to merchants using eCedi-compliant apps and smart devices.
As Ghana positions itself to leverage the potential of digital currency, the successful pilot of the eCedi reinforces the Bank of Ghana’s role as a key facilitator of the digital economy, fostering financial inclusion and resilience within the nation’s payment ecosystem.
