The Bank of Ghana partners with Giesecke+Devrient (G+D) to pilot a general-purpose Central Bank Digital Currency (retail CBDC) in Ghana, West Africa.
The BoG announced it signed a contract with Germany’s Giesecke+Devrient (G+D) to pilot a retail CBDC in Ghana, the e-Cedi. Munich-based Giesecke+Devrient provides services like banknote and securities printing, smart cards, and a cash handling system.
The digital currency will be tested with local banks, merchants, payments service providers, consumers, and relevant stockholders. The project is part of the ‘Digital Ghana Agenda’, which involves the digitization of a country of 30 million people and its government services. The digital e-cedi aims to complement and serve as a digital alternative to physical cash.
The project will be divided into phases like 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 a definition of the parameters for the test phase.
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.
Dr. Ernest K. Y. Addision, Governor of BoG, has stated, CBDC presents an excellent opportunity to build a “robust, inclusive, competitive and sustainable financial sector, led by the Central Bank. 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.”
Also Read: Bank of Jamaica Minted Jamaica’s First Batch of the CBDC
Central banks around the world are exploring the introduction of digital currency as legal tender. The CBDC will use G+D’s Filia solution, which includes conducting offline payment.
Dr Wolfram Seidemann, CEO of Giesecke+Devrient, said, “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.”
