New Central Bank Document Outlines Key Motivations for Issuing the Digital Currency – Emerging Markets Bitcoin News

Recently released documents by the Bank of Ghana (BOG), outline some of their key motivations for the development of the central bank’s digital currency (CBDC). Also, in the document, the bank’s governor insists the institution is open to suggestions that will help it to successfully launch the digital currency.

CBDC has many benefits

A document detailing the motivations of Ghana’s central bank to create a digital currency for central banks (CBDC), was released by it recently. The document also touches on the digital currency’s design as well as the benefits it will bring to the Ghanaian economy.

Bitcoin.com News previously reported that Bank of Ghana (BOG), began to develop its CBDC around 2021. It was hoped it would pilot the digital currency by the end of the year. According to reports, the BOG selected Giesecke Debrient as its partner for implementation in August 2021. Before that, Ghana’s vice president, Mahamudu Bawumia, had praised the central bank’s plan to issue the digital currency. A digital currency would boost intra-African trade, he said.

On the other hand, some stakeholders like the blockchain lobby group, Afroblocks — which claimed it was not consulted — urged the central bank to design a digital currency that is not based on “old traditional siloed financial thinking.” Doing this enhances the e-cedi chances of success, Afriblocks argued.

In a statement that was attached to the document, Ernest Addison (BOG governor) appears to address critics’ concerns. In his statement, Addison asserts that the BOG would “extensively engage stakeholders to the extent possible for their active participation and successful implementation.”

Financial Inclusion

Elsewhere in the document, the BOG said it “considers CBDC to be of strategic importance to a progressive and digitally inclusive society.” It adds it has since developed the digital currency so it can meet the central bank’s strategic goals and one of these are fostering financial inclusion.

“The design principles of the e-Cedi, in particular accessibility and consecutive offline payments would contribute to the government’s objectives of digitizing the Ghanaian society and promoting financial inclusion,” reads the document.

The other strategic goals that must be met by the digital currency include helping to digitize the economy as well as enhancing consumers’ adoption of digital payments. The BOG also claims the e-cedi would address the risks that are posed by “unregulated privately issued digital currencies.” A digital cedi would, on the other hand, be able to “meet the demand for digital currencies without posing systemic risks.”

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Terence Zimwara

Terence Zimwara was a Zimbabwe award-winning journalist and author. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.