BoG's e-cedi rollout fits well with emerging financial technologies – Banking Consultant

•The Bank of Ghana's efforts to introduce the first digital currency for Ghana has been lauded

•The move, Otuo Acheampong believes fits well the central bank's objective to deepen financial inclusion

•The e-cedi will be rolled out in September this year in a pilot phase

Banking Consultant,

Read full articleNana Otuo Acheampong has lauded the introduction of the electronic cedi as part of Ghana's currency regime.

According to him, the move fits well with the Bank of Ghana's objective to deepen Ghana's financial inclusion efforts and position in Africa as well as embrace emerging financial technologies in payment systems.

“One major advantage of this system is the efficiency and speed with which funds will be transferred electronically in buying and selling or transacting businesses,” he is quoted by the B&FT newspaper.

Otuo Acheampong however clarified that the existence of a regulator for the roll out of the e-cedi in September this year makes it different from that of the cryptocurrency, thus the legal tender for transactions will be that off a fiat cash.

“The Bank of Ghana will provide a platform on which more value will be added to digital transactions, linking Ghana’s financial transactions to international platforms,” he added.

Meanwhile, Ghana’s central bank is set to begin a first of three pilot-phased rollouts for the nation’s digital currency known as the e-cedi in September this year.

It is expected to operate in a sandbox interim and hinged on advancing financial inclusion and facilitating trade towards a cash-lite economy.

First deputy governor of the Bank of Ghana, Dr Maxwell Opoku-Afari, providing details at a workshop for Business Journalists earlier said the digital currency when fully adopted will outline the use of other digital currencies.

“Digital Currency is part of the central bank acknowledging the need for digital payment and digital delivery of financial services. By this, the Bank of Ghana will provide a platform on which we can add more value to digital transactions,” Dr Opoku-Afari said.

“We have to take out time to design it with all the security features and so have started it in a pilot phase through what we call a sand-box to learn lessons before we open it up to the general public,” he added.

He continued, “The central bank's digital currency is FIAT money, it is cash on its own so that the financial institution like the banks and FinTechs will be able to create value addition on the digital cash,”

Dr Opoku Afari, however, assured of the central bank's resolve in ensuring the viability of the e-Cedi before introducing it to the general public as legal tender for financial transactions.