Business News of Wednesday, 11 August 2021
Source: www.ghanaweb.live
2021-08-11BoG partners German firm to pilot first Central Bank Digital Currency in Africa
BoG Governor, Dr Ernest Addison, and the CEO of Giesecke+Devrient, Dr. Wolfram Seidemann
• The Bank of Ghana has earned the first spot in Africa to pilot the continent's first Central Bank Digital Currency
• The partnership agreement is with German firm, Giesecke+Devrient
• G+D will provide the technology and develop the solution adapted to Ghana’s requirements to be tested in financial institutions
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The Bank of Ghana has entered into partnership agreement with German firm, Giesecke+Devrient to pilot a first general-purpose Central Bank Digital Currency (CBDC) in Africa.
The partnership will serve as a precursor to the issuance of a digital form of the national currency, the Cedi, and to facilitate Ghana’s cashlite agenda and payment systems.
A statement issued by the central bank on August 11, 2021, explained that, G+D is providing the technology as well as developing the solution adapted to Ghana’s requirements which will be tested in a trial phase with banks, payment service providers, merchants, consumers and other relevant stakeholders.
“The project will be divided into three phases: design, implementation and pilot. In the design phase, all framework parameters for the CBDC pilot will be specified and defined. These include economic, regulatory and technical requirements of the country as well as the definition of the parameters for the test phase,” the statement read in part.
Also the statement copied to GhanaWeb said, in accordance with these individual requirements, "G+D's CBDC solution would be adapted for the Ghanaian context in the second phase. In the pilot phase, a user group of diverse demographic and socio-economic backgrounds will test the solution in the field using different channels and form factors such as mobile apps and smart cards."
Over the course of the pilot project, a study will be conducted on the acceptance of the e-Cedi from the end users' perspective.
In addition, the IT security of the infrastructure, impact of the project on monetary policy and payment system, and the legal implications will be evaluated and insights from pilot user experiences would provide Bank of Ghana and G+D with valuable lessons for a nationwide rollout of the e-Cedi," parts of the statement revealed.
Governor of the central bank, Dr Ernest Addison, reacting to the development stated that CBDC presents a great opportunity to build a robust, inclusive, competitive and sustainable financial sector, led by the Central Bank.
Dr Addison noted that, "From all indications, the concept has a significant role to play in the future of financial service delivery globally. This project is a significant step towards positioning Ghana to take full advantage of this emerging concept.”
Dr. Wolfram Seidemann, CEO of Giesecke+Devrient on his part emphasized that central banks around the world are exploring the introduction of digital money as legal tender.
He made the disclosure that, "the Ghanaian government is one of the first African countries now entering a pilot phase. We are proud to support Ghana with our technology and expertise.”
Read the statement below:
