Ghana wants to make sure that its digital currency can be used on any widely used payment network maintained by mobile phone companies.
The usage of the eCedi, via which the Bank of Ghana aims to enhance financial inclusion, should be as simple as possible, according to a study issued by the banking regulator. That means it must be compatible with mobile money, which has become an integral component of how consumers use their phones to pay for products and services.
The eCedi must be introduced to complement and strengthen existing payment methods, according to the paper. “As a result, existing electronic and mobile payment systems must be compatible with the eCedi in order for them to use the eCedi.”
How this will be performed was not specified in the study. While mobile money transfers carry a fee, eCedi transactions are supposed to be cost-free.
According to the Atlantic Council, Africa’s largest gold producer was one of 14 countries testing central bank digital currencies as of December 14. Nigeria is one of the nine countries that has completely launched a virtual tender. More central banks across the world are experimenting with digital versions of their currencies, enabling for faster and cheaper cross-border money transactions.
The government of Ghana has proposed a 1.75 percent fee on digital transactions, including mobile money, but opposition politicians have objected, claiming that it will reduce financial inclusion in a nation where more than 40% of individuals do not have a bank account.
According to the Bank of Ghana’s research, “the eCedi ecosystem can further increase financial inclusion by possibly correcting current pain points,” such as delayed settlements of mobile-money transactions conducted outside of a service provider’s network. Mobile money, which was originally offered in Ghana in 2009 by MTN Group’s local business, skyrocketed to 82.9 billion cedis ($11.5 billion) in December, up from 67.7 billion cedis a year earlier. Users of the site may receive loans and buy insurance without having to have
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