Cryptocurrency News

Ghana central bank gearing up for digital currency pilot

The Bank of Ghana (BOG) is reportedly moving towards the launch of a central bank digital currency (CBDC) experiment.

speaking during a news conference In Ghana’s capital Accra, on Monday the governor of the country’s central bank, Ernest Edison, revealed that the BoG was in the advanced stage of creating a CBDC.

As part of his address, Edison said that the planned e-CDI will go through development and evaluation phases before a decision is made on a national rollout.

According to the BoG governor, the final phase will include a pilot study to finalize the issues related to feasibility before the CBDC goes into national circulation.

Detailing the process done so far, Edison said the design phase is already nearing completion, with the implementation team on standby for phase two. The pilot study will reportedly involve a limited rollout of planned e-CDI for mobile payments.

“From that pilot, we will be able to determine if this is possible and what kinds of things need to change in order for it to work effectively,” the central bank governor said.

As for Edison, the country wants to advance the development of CBDCs on the continent, stating:

“The Bank of Ghana was one of the first African Central Banks to announce that we were working on a digital currency, conceptualizing e-CDI.”

Indeed, as previously reported by Cointelegraph, BoG is exploring the possibility Creation of CBDC since the end of 2019. In June 2020, the central bank Confirmed that it is ready to conduct a pilot e-CDI project.

Commenting on Bitcoin (B T c) and cryptocurrencies, the central bank governor warned investors to be wary of the volatility of virtual currencies. According to Edison the volatile nature of crypto prices makes them unsuitable as both a unit of account and a medium of exchange.

Instead, Edison called for a greater emphasis on central bank-issued digital money, which the BoG governor identified as a better digital currency than crypto.