The governor of Ghanaâ€™s central bank, Ernest Addison, has said his institution is now â€œin the advanced stages of introducing a digital currency.â€ However, before its release into circulation, the digital currencyâ€”which is also known as the â€œe-cediâ€â€” will first have to go â€œthrough three phases.â€
Bank of Ghanaâ€™s Embrace of Emerging Fintechs
In his comments during a news conference on May 31, Addison also reiterated the Bank of Ghana (BOG)â€™s desire to maintain its reputation as Africaâ€™s leader when it comes to embracing emerging financial technologies.
Meanwhile, one local media report quotes the BOG chief explaining the key phases which the digital cedi is expected to pass through before its release to the public. As Addison notes, the digital cedi has already gone through the initial phase which involved â€œthe design of the money.â€
Once this process is complete, the BOG will then move to the implementation stage. Addison explained:
According to the governor, it will be this implementation stage that will help the central bank to determine the feasibility of the project.
BTC vs E-cedi
Meanwhile, Addison also used the same news conference to draw comparisons between the â€œunregulatedâ€ cryptocurrencies like bitcoin (BTC), which is â€œtoo volatile to play the function of moneyâ€ and the state-backed cedi. Reiterating his backing central bank digital currencies, Addison said:
â€œI think there is a lot more emphasis on looking at digital money which is backed by the state, backed by the central banks. These private forms of money really are not able to perform the functions of money effectively.â€
In the meantime, with this revelation, Ghana becomes one of the few countries on the African continent to take concrete steps towards this goal. Many other African states are yet to make similar progress.
What are your thoughts on the BOGâ€™s revelation that it is now in the advanced stages of introducing a digital currency? Tell us what you think in the comments section below.
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