Bank of Ghana to Promote Financial Inclusion With its CBDC

The central bank of Ghana known as the Bank of Ghana (BoG) is increasing efforts to release its Central Bank Digital Currency (CDBC). It is finally putting in finishing touches to its research with a focus on using the CBDC (E-Cedi) to foster financial inclusion in its economy. 

This announcement was made by Kwame Oppong, the head of fintech and innovation at the Bank of Ghana at the Africa Money & DeFi Summit. 

Oppong expressly pointed out the purpose for the development of a Ghana CBDC. Almost at the phase of final testing, Ghana intends to provide its citizens with a more appropriate means of payment asides from fiat currency.

“I think in terms of CBDC, our goal is to be able to finish testing it. We’ve seen the results. We’re going to look at the study each and every time in the future. But our real reason for doing it is more financial inclusion, “ he said.

BoG Includes Offline Functionalities for CBDC

Last year, the West African country included offline functionalities for its CBDC in a bid to ensure a wider use range of the digital currency. 

The move was to encourage Ghanaians without internet access or adequate source of electricity to embrace and adopt the E-Cedi. All they would need are smart cards similar to an Automated Teller Machine (ATM) card.

In the pilot phase of these offline functionalities, some participants from one of the Ghana towns called Sefwi Asafo purchased products and services from several digital assets-enabled businesses without connection to the internet. Meanwhile, there have been fears that the CBDC will pose a threat to mobile money operators in the country.

To allay the fears of money operators in Ghana, Clarence Blay, BoG Assistant Director of Fintech and Innovation said 

“For the central bank, one of the critical principle[s] guiding the roll-out of the e-cedi is to complement already existing mobile money operations. [The] e-cedi will not supplant already existing platforms, but rather enhance mobile money services, making it more vibrant and efficient.”

Another West African country that is seriously working on its CBDC is Nigeria. Recently, the country added a new feature to make the E-Naira more attractive and appealing to the citizens.