Ghana Gets German Technology Partner for CBDC Pilot Project
Ghana’s central bank has inked a partnership deal with German banknote and securities printing company Giesecke+Devrient (G+D), for a retail central bank digital currency (CBDC) pilot.
Ghana Progresses With Digital Cedi
The Bank of Ghana announced the news of the agreement with the German company via a press release on Wednesday (August 11, 2021). As part of the agreement, G+D would provide the technological solution for Ghana’s CBDC project.
The CBDC solution from G+D called “Filla”, is said to provide robust security and protect users’ data without contravening regulatory policies. Filla would also ensure “secure, consecutive offline payments” in the absence of a network connection.
According to the BOG, the project forms part of the country’s “Digital Ghana Agenda”, which aims at digitizing the West African country. Furthermore, the BOG stated that the proposed digital cedi project would be tested with merchants, banks, consumers, payment services providers, and other related stakeholders.
Meanwhile, the project will undergo three stages which include design, implementation, and pilot. With the design phase already completed, the BOG is looking at entering the implementation stage.
The pilot phase would study the impact of the CBDC on the country’s payment system and monetary policy, as well as the IT security of the infrastructure and legal effect. As reported by BTCManager in July, the BOG Governor Dr Ernest Addison revealed that the digital cedi would enter its pilot phase by September.
Subsequently, the results from the pilot phase would be useful for the Ghanaian central bank and D+G for the eventual launch of the digital cedi project. Ghana’s CBDC would complement the cedi and serve as a digital alternative, while also enabling payments with the use of smartphones or bank accounts, thereby encouraging widespread financial inclusion.
Commenting on the latest development, Addison said:
“CBDC presents a great opportunity to build a robust, inclusive, competitive and sustainable financial sector, led by the Central Bank. From all indications, the concept has a significant role to play in the future of financial service delivery globally. This project is a significant step towards positioning Ghana to take full advantage of the emerging concept.”
Nigeria’s central bank is also planning to roll out a pilot scheme for its CBDC project later in October.
Source: Read Full Article