Ghana on Monday declared its intention to introduce the e-Cedi, its central bank digital currency (CBDC) later this y following years of development and delays.
The Bank of Ghana (BoG) has been developing the e-Cedi since 2021, and a successful pilot program has been implemented in specific regions, including Sefwi Asaafo.
However, economic and regulatory obstacles have delayed the debut many times. E-Cedi improves financial inclusion and payment efficiency, especially in rural areas with limited internet connectivity.
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Kwame Oppong, Head of Fintech and Innovation at the BoG, emphasised the importance of offline functionality for the e-Cedi, stating, “It was an important feature for us to deliver because, at present, there is no commercial solution that allows for digital money to function in an offline environment. We wanted to create an instrument that allows people to live off-grid and use it as they would use cash”.
With nearly half of Ghanaians without an internet connection, traditional digital payment solutions are ineffective.
Implementing the e-Cedi: strategies for success
The e-Cedi’s launch is contingent on legislative approval, with ongoing technical refinements to ensure its readiness for widespread adoption.
Ghana aims to learn from the experiences of other countries, such as Nigeria, which launched the eNaira in 2021 but faced challenges with adoption due to weak infrastructure and low public trust.
To avoid similar pitfalls, Ghana plans to integrate the e-Cedi with existing financial services like mobile money platforms, ensuring seamless interoperability and encouraging private sector involvement.
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The BoG has also highlighted the e-Cedi’s potential for cross-border payments, having tested it for international remittances with Singapore.
Additionally, the e-Cedi won the “Innovation in Digital Currency Design for Financial Inclusion” award at the 2024 Payment, Innovation and Technology Week in London, recognising its innovative design.