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Bank of Ghana completes cross-border trade using digital credentials

Friday 14 June 2024 14:44 CET | News

The Bank of Ghana has announced the successful completion of cross-border trade using digital credentials, in collaboration with the Monetary Authority of Singapore

Following this announcement, the Bank of Ghana (BoG) and the Monetary Authority of Singapore (MAS) have successfully completed the first proof of concept (POC) under Project DESFT (Digital Economy Semi-Fungible Token). The project demonstrated the use of digital credentials for international trade and cross-border payments. 

In addition, both companies will focus on meeting the needs, preferences, and demands of customers and partners in an ever-evolving market, while also prioritising the process of remaining compliant with the regulatory requirements and laws of the industry.

 

The Bank of Ghana has announced the successful completion of cross-border trade using digital credentials, in collaboration with the Monetary Authority of Singapore. 

More information on the announcement

The Project DESFT represents an initiative made by the Bank of Ghana, with the private sector initiated in June 2023. It comprises the Universal Trusted Credentials (UTCs), a digital trusted credential framework and standard that was developed in order to enable licences, certificates, and trade records to be represented and exchanged (earlier developed by the United Nations Development Programme (UNDP), with support from MAS, BoG, and other global enterprises), as well as Central Bank Digital Currency (CBDC) (the Ghanaian CBDC eCedi infrastructure, which was created and developed by G+D, while the Fidelity Bank Ghana offered banking products and facilitated eCedi exchange transactions), as well as Stablecoins. 

In addition, the projects also include a trade marketplace provided by local SME platforms, with integrated cross-border trade connectivity, and escrow arrangement, facilitating payment upon successful verification of digital credentials and trade fulfilment. 

The first phase of the project aimed to optimise the participation of local MSMEs in international trade in order to allow partners and FIs to efficiently verify the authenticity of trade information. The second phase of Project DESFT took place with the execution of cross-border trade between Ghana and Singapore in April 2024. 

The next phase of Project DESFT is expected to build upon its current achievements and focus on the highly automated digital credential processes, programmable payments across several different digital currencies, as well as support for supply chain finance. The initiative will continue to support SMEs in Africa to engage in international trade by removing the significant challenges they face, including the process of establishing trust with overseas trade partners or obtaining support in cross-border payments and supply chain finance. 



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Keywords: partnership, product launch, cryptocurrency, crypto, crypto asset, payments
Categories: DeFi & Crypto & Web3
Companies: Bank of Ghana, Monetary Authority of Singapore
Countries: Africa, Asia
This article is part of category

DeFi & Crypto & Web3

Bank of Ghana

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Monetary Authority of Singapore

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