Contrary to some views that the Bank of Ghana (BoG) is set to introduce cryptocurrency into the economy, a banking consultant Nana Otuo Acheampong has explained that the electronic digital currency scheduled to be piloted by the central bank in September is not a cryptocurrency.
According to him, unlike cryptocurrencies, electronic digital currencies are highly regulated by central banks across the world to achieve efficiency in the financial ecosystem.
He added that the introduction of digital currency will also help the Bank of Ghana to supervise and shape all electronic payment platforms in the country to reduce the cost associated with financial transactions.
“With cryptocurrency, there is no master who controls the activities that go on there, but with the electronic digital currency, there is a regulator supervising everything that goes on there,” he explained.
The first deputy governor of the Bank of Ghana (BoG), Dr Maxwell Opoku Afari on 12 July 2021 told journalists that the central bank is ready to pilot the country’s first digital currency known as the e-cedi in September – adding that it is expected to operate in a sandbox environment in the temporary, before introducing to the general public as legal tender for financial transactions.
Even though digital currencies are seen as cash on their own, meaning it will not be backed by any money or commodity but just like the normal paper cash, Nana Otuo Acheampong stressed that the existence of a regulator in the field makes it different from cryptocurrency, hence legal tender for transactions just like a fiat cash.
“One major advantage of this system is the efficiency and speed with which funds will be transferred electronically in buying and selling or transacting businesses.”
Signalling Ghana as one of the few countries to pursue such a move on the continent, Nana Otuo Acheampong was of the view that the decision to introduce the currency fits with the Bank of Ghana’s objective of maintaining its position as Africa’s leader when it comes to embracing emerging financial technologies.
He added that the move will also deepen Ghana’s access to global financial transaction platforms to enhance the country’s payment system.
By this, he maintained that the Bank of Ghana will provide a platform on which more value will be added to digital transactions, linking Ghana’s financial transactions to international platforms. With the drive to reduce cash in circulation, Nana Otuo Acheampong said the exercise will help Ghana accelerate its financial inclusion objectives.
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