The Bank of Ghana has joined forces with Giesecke+Devrient (G+D) to pilot a general-purpose Central Bank Digital Currency (retail CBDC) in Ghana.
G+D is providing the technology and developing the solution adapted to Ghana’s requirements, which will be tested in a trial phase with banks, payment service providers, merchants, consumers, and other relevant stakeholders.
To this end, the Bank of Ghana has signed an agreement with G+D to implement a pilot of the CBDC project as a precursor to the issuance of a digital form of the national currency, the Cedi.
The project is part of the ‘Digital Ghana Agenda’, which involves the digitization of the country of 30 million people and its government services.
The digital Cedi, or ‘e-Cedi’, is intended to complement and serve as a digital alternative to physical cash, thus driving the Ghanaian cash-lite agenda through the promotion of diverse digital payments, while ensuring a secure and robust payment infrastructure in Ghana.
It also aims to facilitate payments without a bank account, contact, or smartphone to boost the use of digital services and financial inclusion amongst all demographic groups.
The project will be divided into three phases: design, implementation, and pilot.
In the design phase, all framework parameters for the CBDC pilot will be specified and defined.
These include the economic, regulatory, and technical requirements of the country, as well as the definition of the parameters for the test phase.
By these individual requirements, G+D’s CBDC solution would be adapted for the Ghanaian context in the second phase.
In the pilot phase, a user group of diverse demographic and socio-economic backgrounds will test the solution in the field using different channels and form factors such as mobile apps and smart cards.
Throughout the pilot project, a study will be conducted on the acceptance of the e-Cedi from the end users’ perspective.
In addition, the IT security of the infrastructure, the impact of the project on monetary policy and payment system, and the legal implications would be evaluated.
Insights from pilot user experiences would provide the Bank of Ghana and G+D with valuable lessons for a nationwide rollout of the e-Cedi.
Dr Ernest K. Y. Addision, Governor of Bank of Ghana, has stated that “CBDC presents a great opportunity to build a robust, inclusive, competitive and sustainable financial sector, led by the Central Bank. From all indications, the concept has a significant role to play in the future of financial service delivery globally. This project is a significant step towards positioning Ghana to take full advantage of this emerging concept.”
“Central banks around the world are exploring the introduction of digital money as legal tender. The Ghanaian government is one of the first African countries now entering a pilot phase. We are proud to support Ghana with our technology and expertise,” emphasized Dr Wolfram Seidemann, CEO of the Giesecke+Devrient Currency Technology business sector.
Filia, G+D’s CBDC solution, combines the advantages of today’s cash with the needs of users in an increasingly digitized world. Filia guarantees outstanding security, high availability, and resilience, as well as the ability to protect user data while complying with regulatory requirements.
In addition, the solution enables secure, consecutive offline payments in case no network connection is available.