The latest comments by the bank’s deputy governor confirm the CBDC pilot test will be launched in a sandbox environment.
The Bank of Ghana has announced its intention to launch the pilot phase for its Central Bank Digital Currency (CBDC) by September. This information was revealed by the apex bank’s Deputy governor, Maxwell Opoku-Afari, who told media personnel that the piloting phase was the last phase before implementing the e-cedi.
The top official noted that while a launch was imminent according to the bank’s roadmap for the digital currency, the next stage would be decided based on the success of the pilot phase.
How CBDC Plans of Ghana Started
The Apex bank had in February entered a partnership with digital technology firm Emtech. The goal was to launch a blockchain sandbox, develop a digital currency and improve financial inclusion by leveraging technology.
The Governor of the Bank, Gov. Ernest Addison had said that the bank would use the sandbox to promote innovation. Again in June, the governor had given indications that there would be a pilot test soon. The pilot phase, according to reports, would allow selected individuals to use a digital cedi for transactions on mobile applications.
The latest comments by the deputy governor confirm the CBDC pilot test will be launched in a sandbox environment in agreement. Per his claims, Opoku-Afrai equates the CBDC to fiat money and agrees with Addison’s earlier assertion that a CBDC is nothing like a volatile cryptocurrency, which cannot serve the function of money. Both officials believe that when implemented, financial institutions and Fintech startups will be able to use the CBDC to create value as a means of exchange. This, it is expected, will aid adoption.
The deputy governor also noted that the “Digital Currency is part of the central bank acknowledging the need for digital payment and digital delivery of financial services,” the deputy governor said. This is formally to get into that space and be able to provide a platform on which we can add more value to digital transactions.”
BoG is reportedly the first in Africa to start work on a CBDC. This is in line with the bank’s aim of being the leading bank in embracing and leveraging financial technology. Many other African central banks are still consulting or researching into CBDC. Truly, if the bank adheres to the timelines of its roadmap, the country will be the first to actually roll out a digital currency on the continent.