Ghana works to build offline capacity for its upcoming central bank digital currency (CBDC) in an attempt to promote its use in all parts of Ghanaian society.
According to a Bloomberg report on Oct. 18, Kwame Oppong, director of financial technology and innovation at the Bank of Ghana, announced that the country’s digital currency, the “e-cedi”, will enable offline transactions during the Ghana Economic Forum on Monday.
Oppong emphasized that Offline functionality enables Ghanaians who do not have reliable access to electricity and internet to take over the country’s CBDC, says:
â ???? The e-cedi can also be used in an offline environment with some smart cards.
A smart card is a plastic card the size of a credit card with a chip that allows the user to conduct transactions with a pre-loaded balance. A similar system was tested by Oxfam to facilitate payments with the decentralized stablecoin DAI to provide aid in the event of an environmental disaster.
According to World Bank data released in 2019, 84% of Ghanaians then had stable access to electricity, while only 53% were connected to the internet.
During the month of August, BoG announced that it has partnered with German financial firm Giesecke + Devrient (G + D) to pilot a retail CBDC in Ghana.
The announcement came just a month after Ghanaian Vice President Mahamudu Bawumia pleaded for African governments to adopt digital currencies as a means of promoting trade across the continent. during the 5th Ghana International Trade and Finance Conference, which took place in July.
The local acceptance of decentralized cryptocurrencies is also increasing, and analytics firm Chainalysis reported that Africa’s cryptocurrency market has grown by over 1,200% from 2020 to last month.