Ghana’s Central Bank Says Its Digital Currency ‘eCedi’ is Aimed at Financial Inclusion

Ghana wants to use the digital currency to accelerate a cash-lite economy.

Ghana’s Central Bank Says Its Digital Currency ‘eCedi’ is Aimed at Financial Inclusion

Photo Credit: Pixabay/ DavidRockDesign

eCedi was first mentioned by Ghanian authorities last year in 2021.

Highlights
  • eCedi roll out does not have a definitive date as yet
  • eCedi will be regulated by Ghana’s central bank
  • eCedi may have a provision of hardware wallets

Ghana's central bank has outlined details on its ‘eCedi' digital currency that it hopes will bring more people to join the national banking system. The Bank of Ghana has presented a digital paper advocating hardware wallet services for those Ghanians, who do not have access to internet and bank accounts. The West African country is planning its blockchain-based national digital currency in order to digitise its economy and axe corruption. eCedi was first mentioned by the Ghanian authorities last year in 2021.

“Bank of Ghana declared its intention to explore a CBDC within the framework of the financial sector digitalisation program. It is in pursuit of this goal that Bank of Ghana announced the concept of the eCedi — a digital version of the Cedi banknotes and coins,” Dr. Ernest Addison, the governor of the Bank of Ghana said in the introductory message of the digital currency.

A CBDC works a lot like cryptocurrency, but is built on a blockchain network and is virtual in nature. CBDCs, however, are regulated by central banks making their transactions centralised and traceable for a single authority, as opposed to the decentralised nature of traditional cryptocurrencies.

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

In recent times, CBDCs are gaining popularity in several nations that wish to explore the blockchain tech, without having to deal with the volatility and risk factors associated with cryptocurrencies.

Jamaica, for instance, is pacing briskly towards the roll out of its CBDC named Jam-Dex. The Jamaican government will be gifting $16 (roughly Rs. 1,200) as an incentive to the first 100,000 adopters of Jam-Dex.

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

In India, Finance Minister Nirmala Sitharaman has also confirmed plans to bring a national digital rupee in the coming days.


This week on Orbital, the Gadgets 360 podcast, we dive into Apple's Peek Performance event. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Radhika Parashar
Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More
NASA's Massive Moon Rocket Set for Public Debut in Rollout to Florida Launch Pad
Google I/O 2022 to Be Held on May 11–12, Registrations Free, Open for Virtual Watching
Read in: हिंदी
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.