Ghana has joined the rave for Central Bank Digital Currencies (CBDC) as it announces the approach to final stages. The governor of the Ghanaian Central Bank, Ernest Addison said that the “e-cedi” will go through three stages. He also expressed the commitment of the bank to be the first to try out new technologies in the continent.
According to information from local reports, the three stages are the design, implementation and pilot stages. Addison stated that the final stage would involve a select number of residents to test the virtual currency. The results would tell if the implementation of the e-cedi would be worth it.
The Bank Chief Executive revealed that its team is looking at the implementation stage. The announcement was made during a press conference in Accra, the nation’s capital on Monday. He spoke of the West African country being one of the first banks in the continent to announce efforts for a CBDC.
Ghana’s E-Cedi in Comparison with Bitcoin
While declaring the functions of the proposed digital currency, the Bank Chief has maintained that citizens should beware of other digital currencies. According to Addison, cryptocurrencies are not yet regulated and are very volatile. He added that a cryptocurrency like Bitcoin does not equal standards of money.
He reiterated the “sharp changes” in the value of Bitcoin. According to him, money is meant to be employed as a means of exchange but if it is unstable, it cannot be guaranteed to be used as money. He mentioned that this is why digital currencies backed by the state are better options.
Ghana happens to be the pioneers of digital currency advancement in the continent. Other countries like China, Cambodia and Sweden are also in concluding stages for its implementation.