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After years of development and delays, Ghana is finally preparing to roll out its central bank digital currency (CBDC), the e-Cedi, in 2025. The Bank of Ghana (BoG), once a leader in Africa’s CBDC race, is now positioning the e-Cedi as a key tool for financial inclusion and digital payment transformation, pending approval from lawmakers.
Learning from Nigeria’s eNaira Challenges
Ghana’s digital currency journey follows in the footsteps of Nigeria’s eNaira, which launched over three years ago as Africa’s first CBDC. However, eNaira’s adoption has been sluggish—by March 2024, it accounted for just 0.36% of total money in circulation. Several factors, including weak infrastructure, unreliable electricity, low public trust, and financial crime concerns, have hindered its success.
To overcome these challenges, the BoG is prioritizing offline functionality for the e-Cedi. This feature will allow users to transact without an Internet connection, ensuring accessibility in rural areas with limited connectivity. Kwame Oppong, Head of Fintech and Innovation at BoG, emphasized that the goal is to make digital cash as seamless and convenient as physical cash, particularly for the unbanked population.
Is a CBDC Necessary? Ghana Thinks So
While some countries have scrapped their CBDC plans, arguing that existing digital payment systems are sufficient, Ghana remains convinced that an offline-capable CBDC offers advantages over traditional instant payment solutions. Unlike most digital payment methods, which require Internet access, the e-Cedi can function in remote areas, providing greater financial accessibility.
A Centralized Start with Future Blockchain Integration
Unlike other central banks experimenting with blockchain-based CBDCs, Ghana has opted for a centralized system in the initial rollout. However, BoG has left the door open for potential blockchain integration in the future, if deemed beneficial. This phased approach allows for easier implementation while maintaining flexibility for future technological upgrades.
Global CBDC Trends and the Stablecoin Debate
The global financial community remains divided on the long-term viability of CBDCs versus stablecoins. The Bank for International Settlements (BIS) has expressed skepticism about stablecoins, with BIS Head Agustín Carstens arguing that CBDCs and improved traditional payment systems could render stablecoins obsolete.
As central banks worldwide continue experimenting with digital currencies, the battle between traditional finance and decentralized digital assets is far from over. For Ghana, the e-Cedi’s success will depend on its ability to drive financial inclusion, enhance payment efficiency, and build public trust—avoiding the pitfalls seen in other CBDC rollouts.
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