Central Bank Digital Currency to improve monetary policy decisions - BoG Governor

Dr Ernest Addison 480x430 1121212 Governor of the Bank of Ghana, Dr. Ernest Addison

Thu, 26 May 2022 Source: www.ghanaweb.com

BoG pilots central bank digital currency

CBDC to improve digital payments

The future of money is unknown or uncertain – Governor Addison

Governor of the Bank of Governor, Dr Ernest Addison, has underscored the importance of the introduction of the Central Bank Digital Currency (CBDC) in Ghana.

He believes the rapid adoption of digital technologies across the world, coupled with the introduction of a CBDC, is expected to further consolidate efficiencies derived from Ghana’s fiscal operations and monetary policy decisions.

“As the future of the financial services sector evolves and the future of money is unknown or uncertain, the Bank’s decision to explore CBDC is a bold step to implementing the tenets of an overarching financial sector digitalisation program,” he said.

This was contained in a speech read on behalf of the BoG Governor by the Head of Fintech and Innovations [Kwame Oppong] at the Bank of Ghana during an event organised by the Institute of Chartered Accountants Ghana (ICAG).

Touching further on the CBDC, the governor said it will serve as a digital form of central bank currency denominated in the official (national) unit of account, adding that it offers a common unit of account, store of value and medium of exchange for the sale of goods and services.

“The Bank of Ghana digital currency represents the digital equivalent of fiat Ghana Cedi (banknotes and coins) which provides an alternative for individuals to execute basic financial transactions as well as the settlement of trade engagements among financial institutions," he stated.

“The choice of issuing a CBDC is largely influenced by the efficiency of a country’s domestic payment system and the country’s quest to expand the horizon of its financial inclusion index,” he explained further.

Meanwhile, the Bank of Ghana is in the process of piloting the nation’s first digital currency which seeks to complement existing bank notes and coins as issued by the central bank.

It will among other things promote diversity in the payment system whilst maintaining the safety and robustness of the space and provide a better alternative to newer forms of digital payments.

Source: www.ghanaweb.com
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