The Bank of Ghana says it will by September 2021 begin the pilot phase for the first digital currency known as the ‘e-Cedi’ in the country.
Also known as the Central Bank Digital Currency, it is expected to operate in a sandbox in the interim before its introduction to the general public as legal tender for financial transactions.
To ensure a smooth operation of the yet to be introduced e-Cedi, the Bank of Ghana has partnered Giesecke+Devrient (G+D) to provide the technology and develop the solution adapted to Ghana’s requirements.
The currency will be piloting with banks, payment service providers, merchants, consumers and other relevant stakeholders.
In an interview with Citi Business News, Head of Fintech and Innovation at the Bank of Ghana, Kwame Oppong explained in simple terms what the e-Cedi is and the difference between the e-Cedi and cryptocurrency.
“In our case, an e-Cedi is the digital version of our sovereign currency, and so it’s only the digital version of the cedi that we have. So we have notes, we have coins, and then we have the digital version of the cedi as well, so that’s really what an e-Cedi is. Often you will hear of cryptocurrencies and these are what we consider virtual assets, they are not currencies themselves because they are not issued by any statutory body. So in our case, Bank of Ghana is responsible for the cedi and these are private digital assets that are also decentralized i.e. in comparison to the e-cedi. And also because it’s similar to cash you can have it in your bank account, and you can also have it on you either on a smart card or digital wallet, and you can spend it as you spend cash. So when it’s in your bank account, you can use your bank’s app to spend the e-Cedi,” he explained.
On the issue of security Mr. Oppong said the highest security standards will be used to protect the integrity of the e-currency saying the central bank is also making provision to ensure that the digital money is easily used by all.
“We will have the highest quality of security, and It’s for that reason that we selected a partner with over a 160 years experience in currency printing, and they also have a reputation globally for the quality of their work and the security of their notes. I think consumers who will use this will begin to realize when the time comes that using the e-Cedi often is more secure. There is at least the additional layers of authentication that can be introduced and the ability to more move larger sums without attracting the attention of criminals.”
Mr. Oppong further assured that financial inclusion is key in developing the country’s first digital currency.
“If we are going to print e-Cedi that is going to be the alternative to cash and that can be used by all then the farmer in the village, the market woman and people that live in areas without internet connection, they should be able to use it as they can use cash today and that is what we are working towards”.