Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), stated that the introduction of the e-Cedi will have a positive impact on financial inclusion by extending financial services to remote areas.
This inclusion, according to Dr. Addison, will greatly affect international transfers and remittances. Speaking at the recent International Monetary Fund (IMF) meetings in Marrakech, Morocco, the Governor emphasised the importance of cost-effective and secure digital currencies for these transactions in Ghana.
During a panel discussion at the event, he provided detailed insights into Ghana’s pioneering journey towards a digital currency called the “e-Cedi.”
The Central Bank collaborated with technology partners to explore the digitalization of the Ghanaian Cedi and develop a digital version of the national currency.
The Governor highlighted that the project began with a successful pilot program launched about a year ago, which was made possible by the enthusiastic participation of Ghana’s vibrant and youthful population.
Dr. Addison stated that the involvement of young people in digital innovations has motivated the central bank to promote a form of digitalization within the country.
The trust that the youth have in the institution has played a crucial role in this decision. He emphasised that the digital currency is not privately issued, but rather originates from the Central Bank itself, which inherently makes it more trustworthy.
While acknowledging the potential of the e-Cedi, Dr. Addison also recognized the challenges and concerns associated with digital currencies.
He highlighted cybersecurity threats as a top priority for the bank, and technology partners are working diligently to ensure strong security measures for the new digital currency, as well as prevent misuse and illegal activities.
Dr. Addison clarified that the e-Cedi is designed as a token that does not generate interest, so it does not directly compete with interest-bearing bank accounts.
He mentioned that commercial banks are expected to act as distribution channels for the e-Cedi, but cross-border compatibility remains a challenge that requires international coordination.
After the introduction of the e-Cedi, the bank launched an innovative “hackathon” initiative aimed at fostering fintech innovation.
This initiative invites creative individuals to come up with various use cases for the e-Cedi, including applications in merchant payments, government transactions, trade, and remittances.
The hackathon will run for three months, and young innovators from Ghana will present potentially groundbreaking use cases at the end of the initiative.
