Mahamudu Bawumia, Ghana’s Vice President, has urged African nations to begin investigating digital currencies.
Mahamudu Bawumia, Ghana’s Vice President, has urged African countries to begin investigating digital currencies, claiming that such options can boost intra-African commerce. Bawumia made these remarks, according to reports, while speaking to visitors at the Ghana International Trade and Finance Conference (GITFIC) opening ceremony in Accra. The vice president is also quoted in the paper praising the Ghanaian central bank’s e-cedi initiative. He stated that the Ghanaian government is willing to provide it the credibility and legal support it needs for use.
Ghana is developing its CBDC.
The Bank of Ghana (BOG) is one of the first African central banks to declare the launch of a trial phase for its central bank digital currency, as previously reported (CBDC). The result of the pilot phase will, however, determine the CBDC‘s ultimate approval. The vice president explained that the Pan African Payment and Settlement System (PAPSS), the African continent’s central payment and collection infrastructure, would allow businesses to clear and settle transactions in their currencies rather than relying on third-party currencies.
The use of digital currencies as a means of payment can be a viable option.
According to the Vice President of Ghana, this system could serve as an alternative to current high-cost and long correspondent banking relationships by facilitating trade and other economic activities across the continent through a single, low-cost, and risk-controlled payment clearing and settlement system. He also praised the Akufo-Addo administration’s banking sector and digitization plans in his address. He said, “At the same time, digitalization has become one of Nana Akufo-most Addo’s important policies. When the COVID-19 epidemic struck, forcing many economies into partial or complete shutdowns, it highlighted the importance of pursuing digitalization.”