Ghana to explore offline transactions for upcoming CBDC
The West African country Ghana is working to develop offline capabilities for its forthcoming CBDC in a bid to promote its use across all segments of Ghanan society.
According to the report, While speaking at the Ghana Economic Forum, the head of fintech and innovation at the Bank of Ghana (BoG) Kwame Oppong revealed that the country's digital currency “e-cedi” will support offline transactions.
Oppong emphasized that offline functionality will allow Ghanans who lack reliable access to electricity and internet connectivity to embrace the country’s CBDC, adding, “The e-cedi would also be capable of being used in an offline environment through some smart cards.”
The smart card is basically a plastic credit card-sized card with a chip that allows its user to transact using a pre-loaded fund. A similar system has been trialed by Oxfam to facilitate payments using the decentralized stablecoin DAI to provide relief from environmental disasters.
According to the data published by World Bank during 2019, 84% of the population of Ghana had stable access to electricity while just 53% were connected to the internet.
Back in August, the Bank of Ghana announced it had partnered with German financial firm Giesecke+Devrient (G+D) to pilot a retail CBDC in the country.
The news came just one month after Ghanan vice president Dr. Mahamudu Bawumia advocated for African governments to embrace digital currencies as means to bolster trade across the continent during the Fifth Ghana International Trade and Finance Conference in July.