Ghana has successfully debuted its digital currency, the eCedi, in cross-border settlements, a central bank official said late Wednesday.
Kwame Oppong, Director at the Financial Technology (fintech) office of the Bank of Ghana, said this during the 3i Africa Summit, as the central banks of Ghana and Singapore announced their decision to deepen their collaboration in digital technology development for their financial sectors.
Oppong said the cross-border transaction payment made use of digital credentials, the eCedi, and an approved stablecoin from the Monetary Authority of Singapore (MAS) under the Digital Economy Semi-Fungible Token (DESFT) project.
He said the DESFT project, initiated by the Bank of Ghana in partnership with MAS in June 2023, has progressed steadily with the successful design and development of a trusted credential system that enables small and medium enterprises (SMEs) to log on to the platform with their credentials.
SMEs transform their key information, such as basic credentials, licenses, certificates, and trade records, into verifiable digital credentials on a secure distributed digital ledger system, allowing potential trade partners and financial institutions to efficiently verify the authenticity of such information, said the official.
He said the central bank successfully used the DESFT solution, Universal Trusted Credentials (UTC), a Singapore stablecoin, the Ghanaian Central Bank Digital Currency (CBDC), the eCedi, and purpose-bound money to execute a cross-border trade between Ghana and Singapore last month.
“The live transactions further demonstrate the feasibility of using the proposed Ghanaian domestic retail CBDC platform, the eCedi, in cross-border transactions,” said the official.
He added, “This affirms the potential of the eCedi system for future interoperability with various cross-border credentials and payment platforms.”
The prospective introduction of the eCedi is poised to significantly enhance Ghana’s dynamic payment ecosystem, fostering inclusive growth and innovation while improving consumer experiences, added the official.
“With its interoperability with the DESFT system and verifiable credentials via UTC, the eCedi has the potential to facilitate the participation of Ghanaian micro, small, and medium enterprises in international trade in a cost-effective manner,” he added.
The Bank of Ghana in 2021 announced its decision to develop the digital version of the local cedi currency to support the local payment ecosystem. Enditem