Dr. Ernest Addison
THE BANK of Ghana (BoG) has announced its plan to issue the eCedi, the digital version of the Ghanaian currency soon.
According to the central bank, it was currently analysing the pilot data to map up the strategy for the next steps to the eCedi project.
BoG Governor, Dr. Ernest Addison, who disclosed this, said the move formed part of the bank’s agenda to promote innovative and affordable digital financial services as a means to expanding financial inclusion and encouraging the use of digital payment as an alternative to cash.
He said the eCedi was designed to enhance operational efficiency and cost effectiveness in payments, and provide a safe, secure, and trustworthy alternative to privately issued digital currencies.
Speaking at the Ghana FinTech Awards held recently in Accra, Dr. Addison expressed the central bank’s commitment to continue working with FinTechs to ensure that financial services were provided to all Ghanaians, regardless of their income or location, by encouraging and providing a conducive regulatory environment.
“Indeed, a lot has been done by FinTechs in collaboration with banks and SDIs in these areas. For instance, collateral-free and instant digital micro loans have become an important source of funding for micro businesses,” he said.
The BoG Governor indicated that the absence of an elaborate paperwork, coupled with the flexibility and convenience of round-the clock access, enhanced the appeal.
“By using alternative data, such as social media and mobile phone usage, FinTechs can assess the creditworthiness of loan applicants in new ways and enable persons who could not obtain loans for lack of collateral to do so,” he explained.
However, Dr. Addison said a lot needed to be done with the interventions so as to be impactful.
“With a technologically savvy youth, the future of digitally enabled financial inclusion looks promising. But it must start now with solutions tailored to their needs.
Addressing the financial inclusion needs of the youth amounts to investing in the future of a financially literate generation, that can be tapped into for accelerated and inclusive economic empowerment,” he added.
BY Jamila Akweley Okertchiri