Bank of Ghana outlines the idea behind its CBDC design

TL; DR Breakdown

• Bank of Ghana outlines the idea behind CBDC creation
• BOG specifics importance of the digital currency
• The Central bank wants full financial inclusion

Countries across the globe have not hidden their intentions of releasing their respective Central bank digital currencies. Although some are already putting it into use, others are still trying to come up with theirs. A recently released document from the Bank of Ghana has highlighted why it is looking to create its own CBDC in the coming months. Also, the same document highlights the importance that a CBDC holds on the economy.

BOG specifies the importance of CBDC

In the released document, the Bank of Ghana specified the motivations behind the country’s CBDC design. Asides from the design, the document touched on other vital aspects that will guarantee an overall success when it eventually launches. As reported previously, the Bank of Ghana kickstarted the research and design of its CBDC towards the end of last year. The research came at a period when banks, including the Central bank of Nigeria, announced the launch of its CBDC.

Although the Bank of Ghana wanted a pilot test at the end of last year, it could not get the project to reach that level at the time. Giving a review of CBDC, Vice President of Ghana Muhammad Baumwia hailed the bank for the initiative while noting the currency’s usefulness when it comes to trading across Africa.

Bank of Ghana wants full financial inclusion

Several stakeholders in the project have urged the bank to look into designing a unique CBDC that won’t take on the shape of traditional finance. According to Afroblocks, the project stands a higher chance of success if they do this. However, the bank governor, Ernest Addison, has talked about some of the issues raised in the new document. The Governor noted that the design wouldn’t be done and implemented without considering and consulting their stakeholders and partners.

Also, the Bank of Ghana wants the CBDC to be designed to provide massive inclusion across the country. According to the bank, the e-cedi’s design takes up that shape and would help even the unbanked. Another aspect that was touched on was enhancing the economy through fostering digital payments. The bank also noted that they intend to tackle the issues surrounding unregistered private assets by creating the CBDC.