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Ghana is aiming to be the first African country to issue a central bank digital currency.
According to reports, the Bank of Ghana (BoG) is considering launching a central bank digital currency (CBDC) experiment.
Speaking during a news conference in Ghana’s capital, Accra, on Monday, Ernest Addison, governor of the country’s central bank revealed that the BoG was in the advanced stages of creating a CBDC.
Addison stated in his talk that the anticipated e-cedi will go through developmental and assessment phases before a decision on a countrywide deployment is reached.
The last stage, according to the BoG governor, would include a pilot study to address questions about feasibility before the CBDC goes into nationwide circulation.
Addison described the process thus far, saying that the design phase is already reaching completion, with the implementation team on standby for phase two.
o. The pilot study will reportedly involve a limited rollout of the planned e-cedi for mobile payments.
“From that pilot, we will be able to determine whether this is feasible and what sort of things need to be tweaked to make it work effectively,” the central bank governor added.
For Addison, the country is looking to pioneer CBDC development on the continent, stating:
“The Bank of Ghana was one of the first African Central Banks to declare that we were working on a digital currency looking at the concept of an e-cedi.”
Indeed, as previously reported by Cointelegraph, the BoG has been investigating the creation of a CBDC since late 2019. The central bank declared in June 2020 that it was ready to undertake an experimental e-cedi initiative.
In a statement about Bitcoin (BTC) and cryptocurrencies, the central bank governor cautioned investors about the volatility of virtual currencies. Cryptocurrency prices, according to Addison, are inappropriate as a unit of account and medium of exchange due to their volatility.
Instead, Addison advocated for a greater emphasis on central bank-issued digital money, which the BoG governor recognised as a superior kind of digital currency to cryptocurrency.