Yesterday the Bank of Ghana announced that they have signed a contract with the German Giesecke+Devrient (G+D) Currency Technology to launch a pilot of Ghana’s central retail bank (CBDC) digital currency, e-Cedi.
The Bank of Ghana is already quite advanced in its research on CBDCs. As the governor of its central bank, Dr Ernest Addison, explained in June, Ghana’s approach is divided into three stages. It is a design phase, an implementation phase and a pilot phase.
The implementation phase is where L+R will adapt its CBDC solution to the needs of Ghana. The digital currency will be tested on a diverse group of users to test its functionality.
“The CBDC presents a great opportunity to build a robust, inclusive, competitive and sustainable financial sector, led by the Central Bank,” said Dr Addison. “This project is an important step towards positioning Ghana to take full advantage of this emerging concept.”
CBDC will use G+D Filia solution, which includes the ability to make offline payments, a flexible balance between privacy and transparency, and the ability to integrate Filia into larger payment ecosystems.
Financial inclusion, one of Ghana’s main motives for issuing a CBDC, will also be promoted. The CBDC will eliminate the need for a bank account, requiring a smartphone or other form of digital wallet.
This is the second time that G+D has won a CBDC project. The first was Thailand, who has extensive experience with CBDCs, having completed six CBDC initiatives. G+D’s parent company, Giesecke+Devrient, is a major provider of central banking infrastructure.
Meanwhile, elsewhere on the African continent, Nigeria hopes to pilot its CBDC as early as October this year. The potential for using a CBDC for cross-border payouts also feature prominently, including the latest lawsuit between France and Tunisia.