On 24 July 2024, the Bank of Ghana (BoG) and the Monetary Authority of Singapore have completed a groundbreaking proof of concept (POC) demonstrating the viability of Ghana’s central bank digital currency (CBDC), the e-cedi, for cross-border payments. This successful experiment has shown that many intermediaries and associated costs typically involved in international transactions can be eliminated, thus streamlining the process.
Giesecke+Devrient (G+D), the technology partner for the Ghanaian central bank, announced that the POC confirmed the effectiveness of utilizing digital credentials for international trade and cross-border payments. The initiative is part of the Project Digital Economy Semi-Fungible Token (DESFT) and has proven that the e-cedi can be instrumental not only for domestic transactions but also for transforming cross-border payments.
Earlier this year, in April, the Ghanaian and Singaporean central banks completed their first cross-border transaction using the e-cedi. This milestone underscores the potential of digital currencies to enhance international trade by simplifying processes and reducing costs.
The project also focused on developing a trusted credential system to support the implementation of the e-cedi. Maxwell Opoku-Afari, Deputy Governor of the BoG, highlighted the central bank’s commitment to supporting small and medium-sized enterprises (SMEs) through this innovative approach.
The POC was a collaborative effort involving Fidelity Bank, a Ghanaian commercial bank, which provided banking and exchange services for the CBDC. This experiment not only demonstrated the utility of the e-cedi in cross-border transactions but also underscored its importance in digitizing international trade for SMEs.
The success of this project marks a significant step forward in the global token economy, showcasing how programmable payments, foreign currency exchange, and interoperability with cross-border payment and credential platforms can be effectively managed using a CBDC. This achievement boasts the potential of the e-cedi to enhance the efficiency and security of the Ghanaian domestic payment system and its applications in global financial transactions.
