The bank of Ghana (BOG) has made statements alluding to the fact that they may be building an electronic version of the countries legal tender, Ghana Cedi.
BOG has announced plans to introduce E-Cedi in the future to enhance digital financial services in the country, according to reports by Citi FM Business News.
Reports by the Bank of Ghana show an increase in digital transactions fulled by mobile money. On the other hand, cheques issued by commercial banks have decreased substantially in parallel to the growth of Mobile Money.
In the first half of 2019, Ghana recorded a total of 140 billion Ghana cedis, which is a 34 percent increase from the 104 billion recorded in the same period last year.
Bank cheques have seen a massive drop from 3.6 million Ghana cedis in the first half of 2018 to 3.3 million Ghana cedis in the same period in 2019.
The Bank of Ghana made mention of its plans to introduce an electronic version of the Cedi at the 23rd National Banking Conference. The Governor, Dr. Addison, said the E-Cedi would help promote digitization in the financial sector.
“The Bank of Ghana is also in discussion with key stakeholders to explore a pilot project on central bank digital currency with the possibility of issuing an e-cedi in the near future.“
Ghana’s economy continues to be controlled by digital payments with mobile money leading the pack. Cryptocurrencies such as bitcoin have also seen a rise in popularity as the mediums for buying bitcoin in Ghana has increased exponentially.
Ghana’s Central Bank is currently working with 16 tech firms who have collaborated with 22 banks to offer various digital services including blockchain technology.
Despite the increase in blockchain adoption across the continent, cryptocurrency, the most popular blockchain product, still faces several regulatory difficulties.
Most African regulators hold the view that cryptocurrency users will engage in money laundering, dark web activities, and other illegal actions. For instance, in the last two years, Tanzania, Ghana, Uganda, Nigeria, and Kenya have all issued warnings concerning cryptocurrency operations in the respective state. With several taskforces launched to investigate best regulation policies in Africa, 2020 is set to be more favorable for cryptocurrency regulation in the region.