Ghana is finally poised to introduce its central bank digital currency (CBDC), the e-Cedi, after years of development. The Bank of Ghana (BoG) is ready to launch the e-Cedi this year, pending legislative approval.
Ghana was once a frontrunner in the CBDC race in Africa but lost momentum when Nigeria launched the eNaira over three years ago.
The eNaira’s adoption has been slow, with less than 0.5% of Nigerians using it within the first year. Ghana aims to learn from Nigeria’s struggles and avoid similar pitfalls.
The e-Cedi’s offline functionality, allowing it to be used without an internet connection, could be a game-changer, particularly for rural communities with limited internet access. The BoG’s goal is to make digital cash as easy to use as physical cash, especially for the unbanked.
While there is ongoing debate about the necessity of CBDCs, Ghana believes an offline-capable CBDC is superior to traditional instant payments.
Unlike other central banks, Ghana is initially using a centralized system for the e-Cedi, with potential future integration with blockchain-based systems.
The battle between traditional finance and crypto continues as CBDCs gain traction. The Bank for International Settlements (BIS) remains skeptical of stablecoins, arguing they may become irrelevant as CBDCs roll out and traditional payment systems improve.
