Ghana's central bank told Ghana's central bank that inclusivity would be a key factor for its upcoming digital currency, called "eCedi," and the central bank would try to provide the currency to citizens without the need for a bank account, or even internet access.
In a design paper released on Tuesday, the bank suggested using hardware wallets and other devices to integrate with the digital currency “eCedi.”
The Central Bank of Ghana has outlined the main aspects and plans for a CBDC digital currency which will be individual based.
He told the bank that digital payments and their mainstreaming are expected to help the African economy, and also that eCedi adoption will be as seamless as possible.
Ghanaian central bank eyes digital hardware wallets and smart cards:
Ghana's central bank has proposed issuing offline wallet devices, or even smart cards, to enter unbanked individuals into the eCedi system.
According to data from Statista, around 43% of Ghanaians are still unable to set up a bank account.
Offline wallet plans are also an important factor in the eCedi offline functionality, which is intended for rural areas with limited Internet access.
According to a 2019 study by the World Bank, only 53% of Ghanaians use the Internet.
The central bank has proposed offline wallet devices, smart cards and even smart bracelets to facilitate peer-to-peer offline transactions.
But the bank did not specify how this can be achieved.
The bank went on to explain that a smartphone equipped with a banking application would be the ideal way to use eCedi.
Mobile and card payments are the most common methods of transactions in the country, and eCedi will complement existing digital payment networks, according to the central bank.
The same agency also told that the total value of mobile money transactions increased by 82% between 2019 and 2020.
The move comes amid a growing interest in digital currencies for the world's central banks.
Ghana unveiled eCedi plans in 2021, as it looked to digitize its economy to boost growth and reduce corruption.
The system is being developed with the German payments company “Giesecke + Devrient”.
The move also comes against the backdrop of improved economic growth in Africa's largest gold-producing country.
Several developed and developing economies have announced the development of digital central bank currencies, given their potential use in domestic and international transactions.
The United States recently said it is looking to develop a digital dollar, after China launched the digital yuan earlier this year.
