Ghana Is Working On a Hardware Wallet in Support of Its Digital Currency

Ghana’s central bank has announced that it aims at inclusiveness to be the major factor for the drive of its expected digital currency, and it will try to make the currency accessible to citizens who are not yet bankable or without access to the internet. In a paper about the design published by the bank on Tuesday, the bank suggested the usage of hardware wallets and other handy devices for the usage of the eCedi.

The Central Bank of Ghana, in view of its Central Bank Digital Currency policy, listed the major aspects of its proposition for a retail and token-based currency. The bank said that the move at bringing digital payment to the mainstream is to aid the formalization of the African economy in line with global developments. This move is also expected to make the wide adoption of the Ghanaian digital currency seamless to many people that would adopt it.

Central Bank of Ghana Equally Eyeing Smart Cards

The apex bank in Ghana proposed that it would issue offline devices that would serve as wallets as well as smart cards so it could attract individuals without banks into the new eCedi financial system. With regards to reports from Statista, almost 43% of the population in Ghana do not have access to banking accounts or facilities.

The project, which is working for an offline wallet, also considers the eCedi potential offline operation as it is planned for rural settlers with little or no internet access. As reported by a 2019 research of the World Bank, up to 53% of the population in Ghana already had access to the internet. The apex bank has suggested smart cards, offline wallets as well as digital wristbands to aid offline transactions between peers.

The central bank, however, did not clarify how its plans would come to fruition. It said that having a smartphone with a bank application on it would be the best option for using the eCedi. Card-based payments and mobile transfers are the most popular means of transaction in the country, while the eCedi will be complementary means to other existing payment methods.  The central bank said that the value of mobile transactions in the county increased exponentially by 82% from 2019 to 2020. 

Influence of Increased Interest in Central Bank Digital Currencies

The digitalization of the Ghanaian economy is coming on the wings of a global drive for digital currencies as it hopes to improve the country’s economy and reduce financial corruption in one fell swoop. The eCedi network is being built in collaboration with German financial firm Giesecke+Devrient.   

Leave a Reply

Your email address will not be published. Required fields are marked *