The Central Bank of Ghana has explained the details of its digital currency “eCedi” and expects more people to join the national banking system. The Bank of Ghana has introduced a digital paper advocating for hardware portfolio services for those Ghanaians who do not have access to the Internet and bank accounts. The West African country is planning a blockchain-based national digital currency to digitize its economy and crack down on corruption. eCedi Ghana authorities first mentioned it last year in 2021.
“The Bank of Ghana stated its intention to study a CBDC as part of its financial sector digitization program. To this end, the Bank of Ghana announced the eCedi concept – a digital version of Cedi banknotes and coins,” said Dr. Ernest Addison, Governor of the Bank of Ghana. .
A CBDC works similarly to a cryptocurrency, but is built on a blockchain network and is virtual in nature. CBDCs, on the other hand, regulate their centralized transactions and make them traceable to a single authority, as opposed to the decentralized nature of traditional cryptocurrencies.
“In Ghana, motives include a combination of factors; facilitating financial inclusion, pursuing a cash economy, increasing operational efficiency and cost-effectiveness in payments, and providing a safe, secure, and reliable alternative to privately issued digital currencies, ”Addison said.
Recently, CBDCs are gaining popularity in many nations that want to explore blockchain technology without having to deal with the volatility and risk factors associated with cryptocurrencies.
For example, Jamaica is fast approaching the CBDC release called Jam-Dex. The Jamaican government will donate $ 16 (approximately 1,200 rubles) as an incentive to the first 100,000 users of Jam-Dex.
Meanwhile, Russia has already begun testing the CBDC called the Digital Ruble.
In India, Finance Minister Nirmala Sitharaman has also confirmed his intention to bring in a national digital rupee in the coming days.