The Bank of Ghana has signed an agreement with Giesecke+Devrient (G+D) to implement a pilot CBDC project as a precursor to issuing a digital form of the national currency, the Cedi.
The project is part of the ‘Digital Ghana Agenda’, which involves the digitization of the country of 30 million people and its government services.
The digital Cedi, or ‘e-Cedi’, is intended to complement and serve as a digital alternative to physical cash, thus driving the Ghanaian cash lite agenda through the promotion of diverse digital payments while ensuring a secure and robust payment infrastructure in Ghana.
It also aims to facilitate payments without a bank account, contract, or smartphone, boosting the use of digital services and financial inclusion amongst all demographic groups.
The project will be divided into three phases: design, implementation and pilot. All framework parameters for the CBDC pilot will be specified and defined in the design phase. These include the country’s economic, regulatory and technical requirements and the definition of the parameters for the test phase. In accordance with these individual requirements, G+D’s CBDC solution would be adapted for the Ghanaian context in the second phase.
In the pilot phase, a user group of diverse demographic and socio-economic backgrounds will test the solution in the field using different channels and form factors such as mobile apps and smart cards. Over the course of the pilot project, a study will be conducted on the acceptance of the e-Cedi from the end users’ perspective. In addition, the IT security of the infrastructure, impact of the project on monetary policy and payment system, and the legal implications will be evaluated.
Insights from pilot user experiences would provide Bank of Ghana and G+D with valuable lessons for a nationwide rollout of the e-Cedi.
“Central banks around the world are exploring the introduction of digital money as legal tender. The Ghanaian government is one of the first African countries now entering a pilot phase. We are proud to support Ghana with our technology and expertise,” emphasizes Dr Wolfram Seidemann, CEO of the Giesecke+Devrient Currency Technology business sector.
