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E-Cedi: What you need to know about Ghana’s Digital Currency

E-Cedi
E-Cedi

The Ghanaian government is introducing an electronic currency, E-Cedi, that will be accessible offline.

Watch Is E-Cedi

E-Cedi is a digital currency  developed and controlled by the Bank of Ghana .

This digital currency has the same value as the physical Cedis, and you can use it to make payments and transfers at any time, anywhere. 

It offers the same capabilities as the physical Cedis but in a digital format, borderless, and with expanded possibilities.

History

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As part of ‘Digital Ghana Agenda’, the E-Cedi is a component of a project in Ghana. 

It aims to digitize Ghana’s 30 million citizens and government services. 

The E-cedi is divided into three phases: design, implementation, and piloting. 

Mobile apps and other apps will utilize the E-Cedi.

Vice President of Ghana, Mahamudu Bawumia announced at the opening ceremony of the Fifth Ghana International Trade and Finance Conference in Accra, Ghana, that the Federal Government of Ghana will provide legal and credibility support to the Central Bank of Ghana in setting up a government digital currency. 

In his view, African governments should explore ways of facilitating intra-African trade with digital currencies. 

By doing so, they would be able to make cross-border payments easier and more convenient.

The importance of the E-Cedi

With E-Cedi, Ghana will become more financially inclusive. 

A study conducted by the Atlantic council Geotech Center finds that digital money systems, such as mobile money, are also useful in expanding financial inclusion by making governments include unbanked populations in the digital economy.

Specifically, the Bank of England has concluded that digital currencies can help boost the gross domestic product of a country by as much as three percent by lowering the cost of transferring money and completing transactions.

 In addition, the Bank of International Settlement claims to be able to increase liquidity by speeding up transactions.

How E- Cedi Will Be Used

A shortcode like Mobile Money could be used to spend E-Cedi, or third-party fintechs could be integrated to support the payment system.

Conclusion

In response to global crises such as the COVID-19,E- Cediis a viable solution for the world’s economy when properly regulated. 

The risks are minimal in comparison to other unregulated digital currencies.

Fact Check

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Written by GhLinks Media

This is the official publishing account of https://www.ghlinks.com.gh/ for all general based post .

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