Ghana Prepares to Launch e-Cedi

Lessons from Nigeria’s eNaira

Nigeria’s eNaira was Africa’s first CBDC, but its adoption has been slow. Despite early optimism, usage remained below 0.5% in its first year, and by March 2024, it accounted for only 0.36% of the country’s total money supply. Challenges such as unreliable infrastructure, low trust in government, and financial crime concerns have hindered its success. Ghana is looking to avoid these issues by prioritizing accessibility and usability.

A key feature of the e-Cedi is its offline functionality, which allows transactions without an Internet connection. This is particularly beneficial for rural communities, where Internet access remains inconsistent. According to BoG’s fintech and innovation head, Kwame Oppong, the goal is to make digital cash as straightforward to use as physical cash, especially for the unbanked population.

The Debate Over CBDC Necessity

The global debate over CBDCs continues, with some countries abandoning their plans, arguing that existing digital payment systems are sufficient. Ghana, however, maintains that an offline-enabled CBDC offers advantages over traditional payment methods by reducing reliance on Internet connectivity.

Unlike some central banks experimenting with blockchain-based CBDCs, Ghana has opted for a centralized system at launch. This approach allows for greater control and smoother implementation, with potential blockchain integration considered for future upgrades.