tl;dr
Ghana is set to launch its central bank digital currency (CBDC) called eCedi, developed in collaboration with Germany's Giesecke Devrient. The CBDC aims to prioritize offline functionality to serve rural and unbanked populations. Meanwhile, the Bank for International Settlements (BIS) suggests that ...
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Ghana is set to launch its central bank digital currency (CBDC) called eCedi, collaboratively developed with Germany's Giesecke Devrient, to prioritize offline functionality for rural and unbanked populations. Meanwhile, the Bank for International Settlements (BIS) suggests that CBDCs could render stablecoins obsolete due to improved digital payments.
Five years ago, Ghana was at the forefront of Africa’s CBDC race, but has since fallen behind its neighbor Nigeria. The Bank of Ghana (BoG) now plans to introduce its CBDC this year. Ghana’s e-Cedi has been in development for over five years, working with G D to test various payment scenarios on the firm’s CBDC platform Filia. Kwame Oppong, heading BoG's fintech and innovation, confirmed the readiness to launch eCedi this year, pending lawmakers' approval. Ghana aims to prioritize offline functionality with the eCedi to serve marginalized residents living in remote areas.
The debate over the necessity of retail CBDCs persists globally. Ghana's offline functionality aims to outperform existing instant payment systems, providing advantages for unbanked populations. The eCedi will utilize a centralized model but will be flexible for interoperability with decentralized ledger technology (DLT) systems.
Head of the BIS, Agustín Carstens, has raised questions about the need for stablecoins in the presence of advanced CBDCs and improved payment rails. Carstens emphasized the importance of concentrating on enhancing traditional financial systems to provide a more solid alternative to stablecoins and cryptocurrencies.