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The Bank of Ghana (BoG) has successfully completed a proof-of-concept (PoC) exploring the use of digital credentials and central bank digital currencies (CBDCs) for international trade and cross-border payments.
The initiative, part of Project Desft (Digital Economy Semi-Fungible Token), represents a collaboration between the BoG and the Monetary Authority of Singapore. It aims to leverage technology to facilitate the participation of micro, small, and medium enterprises (MSMEs) from developing countries in global trade.
Maxwell Opoku-Afari, the First Deputy Governor of the Bank of Ghana, emphasized that “Project Desft is designed to help African SMEs overcome major challenges such as establishing trust with international trade partners and streamlining cross-border payments and supply chain finance.”
The project has concentrated on cross-border trade between Ghana and Singapore, utilizing the UN-developed blockchain-based Universal Trusted Credential, the Singaporean Dollar stablecoin, Ghana’s digital currency (eCedi), and purpose-bound money.
Giesecke+Devrient provided the Filia platform for the CBDC component, while local commercial bank Fidelity Bank supported with banking and exchange services for the eCedi.
According to Giesecke+Devrient, the PoC demonstrated a direct transfer mechanism between trading parties, significantly reducing the need for intermediaries and thereby lowering the costs associated with cross-border payments.
Wolfram Seidemann, CEO of Giesecke+Devrient Currency Technology, noted, “This proof of concept illustrates how combining multiple international trade challenges can be addressed through programmable payments, foreign currency exchange, and interoperability with cross-border payment and credential platforms. It showcases the potential of CBDCs to drive economic growth, particularly within the SME sector.”
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