On Tuesday during Ghana’s Annual Banking Conference, Ernest Addison, governor of Ghana’s central bank, shared that a pilot project in rolling out Ghana’s very own Central Bank Digital Currency (CBDC) has been initiated in a sandbox environment.
The digitised version of the national fiat currency, which is backed by cedi in a 1:1 ratio, has already been approved as confirmed by the governor. This follows the expeditious digitisation of payment currencies as the country has seen a 70% surge in mobile banking from 2017 to 2018.
The currency, however, will not be based on the Distributed Ledger Technology (DLT), which then declassifies it from being a cryptocurrency. It will only be produced as per its reserves and can be stored in digital wallets.
Addison clarifies: “It is just electronic money backed by currency, So [the central bank] 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.”