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27.11.2019 Business & Finance

BoG To Issue Digital Currency 'e-Cedi' In Future

By News Desk
BoG To Issue Digital Currency 'e-Cedi' In Future

The Bank of Ghana (BoG) says it is considering the possibility of issuing a digital currency – ‘e-cedi’ in the near future.

According to the Governor of the Bank of Ghana, Dr Ernest Addison “The Central Bank is in discussion with key stakeholders to explore a pilot project (in a sandbox environment) on central bank digital currency with the possibility of issuing the e-cedi in the near future.”

Speaking in a press conference on Monday, Dr Addison said, in an increasingly digitized environment, the BoG has evaluated its role in a digital economy.

Electronic money

Meanwhile, the BoG says it has granted GCB Bank Ghana authorisation to issue electronic money similar to what is popularly known as “mobile money”.

Dr Addison said, “In its issuance of electronic money, GCB Bank would create electronic value backed by equivalent cash which will afford customers to have access to electronic wallets issued by GCB Bank (Ghana). The GCB Bank plans to leverage on its 189 branch network to offer its own agency banking services.”

He clarified that this is not a form of cryptocurrency or a bitcoin, “it is just electronic money backed by currency. So GCB cannot create money; they are only having an electronic representation of the cedi that the Bank of Ghana puts into circulation. So it is not crypto.”