The Central Bank of Ghana said inclusion would be a significant element of its forthcoming digital currency, known as the eCedi and is planning to offer the money to people who do not have to have a bank account or even access to the internet.
In a paper on a design that was released this week, the institution recommended the usage of hardware wallets and other devices that can be used with the eCedi.
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Ghana’s central bank laid out the significant aspects of its plans to develop a token-based, retail central digital currency for banks (CBDC). According to the bank, the introduction of digital payments is expected to aid in formalizing the African economy. In this way, it can make the use of eCedi as easy as is possible.
Ghana Central Bank is looking at hardware wallets and smart cards:
The central bank suggested the issue of devices for wallets offline or smart cards to enable people who are not banked into the eCedi system. According to statistics from Statista, approximately 43 per cent of Ghana’s population has no access to an account at a bank.
Plans for an offline-only wallet consider the offline capabilities, which are specifically designed for rural areas with only a limited internet connection. According to a study conducted in 2019 conducted by the World Bank, 53% of Ghanaians were connected to the internet.
The central bank has proposed using offline wallet devices, including smart cards, intelligent wallets and even smart wristbands that allow offline transactions between peer-to-peer.
The bank, however, did not provide a plan for the method of achieving this.
The bank stated that an iPhone with a banking application would best utilize the eCedi. Card-based and mobile payments are the most commonly used ways of making transactions in the country.
And the eCedi is a perfect complement to existing payment systems that are digital. As per the Central Bank, the value of mobile money transactions has increased by 82% from the years 2019 and 2020.
The move comes amid the growing interest in CBDCs.
Ghana had announced its plans to launch the electronic currency by 2021 as it aimed at the digitalization of its economy to boost growth and cut down on corruption. German payments company Giesecke+Devrient developed this system.
This move is also due to the improvement in development in the most prominent African gold-producing country.
Several developed and emerging economies have announced plans to explore CBDCs due to their potential application for international and local transactions. As per the Atlantic Council, more than ten other African nations are also studying CBDCs that are developing.
The United States recently said it was considering launching an electronic dollar following China’s digital currency earlier in the year.
Source: Google News Trend