The Vice President of Ghana, Mahmudu Bawumia, urged African governments to start exploring digital currencies because such alternatives may promote intra-African trade. The leader explained that in addition, this digital currency allows African countries to make all cross-border payments smoothly.
Government of Ghana supports CBDC
According to a Report, Bawumia made these comments during a speech at the opening ceremony of the Ghana International Trade and Finance Conference (GITFIC) in Accra. The report also cited Bawumia’s praise for the e-cedi project of the Central Bank of Ghana. He said that the Ghanaian government is ready to “provide the necessary credibility and legal support for its use.”
As before Report According to Bitcoin.com News, the Bank of Ghana (BOG) is one of the first African central banks to announce the start of the pilot phase of its central bank digital currency (CBDC). However, the final approval of the CBDC will depend on the results of the pilot phase.
Regarding the Pan-African Payment and Settlement System (PAPSS), the African continent’s central payment and collection infrastructure, Bawumia explained that this will “allow businesses on the African continent to clear and settle transactions in local currencies without relying on third-party currencies.”
He added that the system can also serve as “an alternative to the current high-cost and long-term correspondent banking relationship, promoting trade and other economic activities across the African continent through a single, low-cost and risk-controlled payment clearing and settlement system.”
Ghana’s digital policy
At the same time, the Vice President of Ghana also used his speech to praise the banking and digital policies of the Akufo-Addo government. He says:
At the same time, digitalization has become one of the most important policies of the Nana Akufo-Addo government. When the scourge of the COVID-19 pandemic hit and forced many economies to be partially or completely locked down, it reinforced the need to pursue digitalization.
With the outbreak of the Covid-19 pandemic, mobile money and digital platforms have become important inclusive financial tools in Ghana. Bavumia used Ghana’s success as a reference and urged other African countries to follow his government. He said that this needs to be done to “ensure the growth of AFCFTA” [African Continental Free Trade Agreement] Imagine. “
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