The Bank of Ghana has announced plans to test a central bank-based currency (CBDC) by the end of Q3 2021.
The deputy governor of the Bank of Ghana has stated that a pilot programme for digital currencies is planned for September 2021 and that the pandemic had demonstrated the need to develop a cashless economy. The Bank of Ghana announced that the development of a CBDC would create more inclusivity and increase the reliability of financial payment systems in the country.
The process of introducing the CBDC will be gradual and the success of the pilot phase will determine Ghana’s next steps. Ghana had worked with a fintech for central banks, EMTECH, in February 2021 to implement the sandbox (live-like testing environment) suitable for CBDCs and blockchain technology. According to the deputy governor of the Bank of Ghana, mobile money transactions are not covered by cash and therefore limit the added value, whereas the CBDC is fiat money, so financial institutions will be able to add value to digital money.
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