Bank of Ghana is working towards achieving its CBDC goal by partnering with Giesecke+Devrient (G+D) firm which specializes in currency and securities printing. This is also the same firm helping the Bank of Thailand in piloting its CBDCs.
By cooperating with a German currency technology company, the Bank of Ghana (BoG) is taking another step toward the establishment of a central bank digital currency (CBDC).
The Bank of Ghana (BoG) said on Wednesday that it has inked an agreement with Giesecke+Devrient (G+D), a German banknote and securities printing business, to pilot a retail CBDC in Ghana, West Africa.
G+D will supply its proprietary CBDC technology, Filia, to pilot the issue of a digital form of Ghana’s national currency, the cedi, as part of the arrangement.
Local banks, merchants, payment service providers, customers, and other associated parties will participate in a trial of the digital currency.
The project is part of Ghana’s “Digital Ghana Agenda,” which aims to digitize data and government services for the country’s 30 million citizens.
The digital cedi, often known as e-cedi, is a digital counterpart to the country’s traditional national currency. The CBDC is expected to make it easier to make payments without a bank account, contract, or smartphone, according to the statement.
The e-cedi, according to BoG governor Ernest Addison, offers a wonderful opportunity to build a “robust, inclusive, competitive, and sustainable financial sector, driven by the central bank.”
“From all indicators, the notion will play a big role in the global delivery of financial services in the future. This endeavour is a critical step toward putting Ghana in a position to fully benefit from this new concept,” he added.
Mahamudu Bawumia, Ghana’s Vice President, recently stated that African nations must embrace digital currencies in order to facilitate trade across the continent. In late July, the official stated that trade between African countries requires a “one central payment” mechanism.
G+D, which started off specializing in high-quality money and securities printing, has recently shifted its focus to digital payments and CBDC technologies.
G+D was already negotiating CBDCs with six worldwide central banks, including the Bank of Thailand, in August of last year, using its Filia technology.
G+D has been actively investing in the blockchain and cryptocurrency industry, leading a $17 million Series A fundraising round for Metaco, a Swiss startup that provides custody services for cryptocurrencies and stablecoins, last year.
