Clarence Blay

The Bank of Ghana has dispelled rumours that the Central Bank Digital Currency or eCedi will be operated on blockchain technology.

Speaking at a MoMo Stakeholder Forum, Assistant Director of Fintech and Innovation at Bank of Ghana, Clarence Blay, said the security and trust of the eCedi is paramount to the Bank of Ghana, and as such it will not be developed on blockchain technology.

“Let me make a clarification here, the eCedi is not being developed on a blockchain; the solution is totally different. Because the eCedi is going to be a currency, the issue of trust and security is paramount to the Central Bank.”

“The Central Bank will use a unique technology solution to deploy the eCedi but not a blockchain solution”, he noted.

Though he admitted that the blockchain technology has a lot of potential, he was quick to add that it is not a matured technology.

“We know that the block chain has a potential for payment service provision, but we believe it is not a matured technology. So the Bank of Ghana will deploy a unique technology solution for the roll out of the eCedi.”

eCedi will not be operated on blockchain technology – BoG

On the benefits of the eCedi to already existing Mobile Money platforms and further promote government’s agenda of digitalisation,  Mr Blay said the Central Bank Digital Currency or CBDC will serve as an enabling platform to bolster the operations of existing digital payment platforms.

Regarding when the eCedi will be implemented, the Assistant Director of Fintech and Innovation said the piloting was still ongoing and the Central Bank will duly inform the public when they are ready to roll it out.

eCedi will not be operated on blockchain technology – BoG

“What the eCedi brings to financial service industry is enormous, especially in the area of financial inclusion. There are quite a number of people who undertake payments and digital transactions to provide more value added services”, he added.

The theme for the forum is in sync with the Bank of Ghana’s agenda in digitalising the ecosystem especially through the eCedi which is currently under pilot.

Blockchain technology is an open distributed ledger that stores the record of ownership of digital assets. It has been touted as the new internet by some analysts.