The digital Cedi, also known as the eCedi, represents a token-based Central Bank Digital Currency (CBDC) designed for retail use. The Bank of Ghana views CBDC as strategically vital for promoting an advancing and digitally inclusive society. In pursuit of this vision, they have introduced the eCedi to achieve the following strategic objectives:
- Enhance the level of digitalization within Ghana’s economy.
- Foster greater financial inclusion.
- Encourage wider acceptance of digital payments among consumers.
- Recognize the potential role of the Bank of Ghana as a progressive regulator that supports the growth of the digital economy.
- Create the groundwork for a more secure, efficient, and robust payment system.
- Address the potential risks associated with unregulated privately issued digital “currencies” or virtual assets.
Aligned with the core principles and driving forces behind the eCedi’s implementation, the eCedi will possess the following defining characteristics:
- Accessibility for both the general public and businesses.
- Encompassing low-value transactions.
- Leveraging existing payment infrastructure.
- Mitigating potential risks associated with disintermediation in the banking system.
To bring this initiative to life, the Bank of Ghana (BoG) has collaborated with Giesecke+Devrient (G+D) to conduct a trial of a versatile Central Bank Digital Currency (CBDC) tailored for retail use in Ghana. G+D is responsible for the technological aspects and the development of the solution, which will be tailored to meet Ghana’s specific requirements. This solution will undergo a trial phase involving banks, payment service providers, merchants, consumers, and other pertinent stakeholders.
Sources:
https://www.bog.gov.gh/wp-content/uploads/2022/03/eCedi-Design-Paper.pdf