Ghana is set to introduce its central bank digital currency (CBDC), the e-Cedi, after years of development. Once a frontrunner in Africa’s CBDC race, Ghana fell behind when Nigeria launched the eNaira over three years ago. Now, the Bank of Ghana (BoG) is ready to roll out the e-Cedi, pending legislative approval.
Learning from Nigeria’s eNaira Challenges
Despite being Africa’s first CBDC, Nigeria’s eNaira has struggled with adoption, accounting for only 0.36% of total money in circulation by 2024. Key obstacles include:
¢ Weak infrastructure (unreliable electricity and Internet access)
¢ Low public trust in government
¢ Concerns over financial crime
To address these issues, Ghana is designing the e-Cedi with offline functionality, enabling transactions without Internet access, which could drive adoption, especially in rural areas.
A Hybrid Approach to CBDC Development
Unlike some nations adopting blockchain-based CBDCs, Ghana will launch the e-Cedi on a centralized system first, with potential future blockchain integration.
Meanwhile, the Bank for International Settlements (BIS) warns that stablecoins may become obsolete as CBDCs gain traction, further intensifying the battle between traditional finance and crypto.
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