Central Bank Digital Currency in Ghana, the e-Cedi: Disruptions, Opportunities and Risks

Dataking Policy Brief 006, Accra, Dataking Consulting

20 Pages Posted: 13 Jun 2022 Last revised: 4 Jul 2022

See all articles by King Carl Tornam Duho

King Carl Tornam Duho

Dataking Consulting

Stephen Asare Abankwah

Dataking Consulting

Gabriel Azu

Dataking Consulting

Duke Ayim Agbozo

Dataking Consulting

Vincent Seny Duho

Dataking Consulting

John Selorm Atigodey

Dataking Consulting

Date Written: May 18, 2022

Abstract

There are currently notable innovations emerging from Central Banks across the world, from the focus on climate change, resilient recovery and technological innovations. In the current Fourth Industrial Revolution (4IR), the emergence of technology-driven innovations in the work of Central Banks will shape the impact they have on the global financial system in the next century. Central Bank Digital Currency (CBDC) has been noted as a tool that can advance the quest for enhancing innovation, efficiency, and financial inclusion if designed prudently. Despite a delayed implementation as they continued to be in the research and design phases, there is now an increasing number of Central Banks across the world that are adopting CBDCs. In this policy brief, we provide a discussion of the electronic cedi (e-cedi) which has been developed by the Bank of Ghana as a CBDC. As a new innovation, there are notable opportunities that it has but there are also some relevant areas where there will be disruptions and risks unless they are averted. The study found that the CBDC will provide Ghana opportunities such as improved monetary policy mechanisms, efficient payments, and increased financial inclusion. It will disrupt the entire financial system, impacting the use of physical cash and banking services with the less educated getting the least benefit. Despite these, there are critical risks which include the possibility of cyber-insecurity, and data theft, among others. The study also discussed the implication of the new e-levy on the eventual usage of the e-cedi in Ghana. The discussions provide useful insights for policymakers, practitioners, the international development community and researchers alike.

Keywords: CBDCs, E-Currency, E-Cedi, Central Bank, Ghana, E-levy, Public Policy

JEL Classification: E42, E58, F38, O23, O31

Suggested Citation

Duho, King Carl Tornam and Abankwah, Stephen Asare and Azu, Gabriel and Agbozo, Duke Ayim and Duho, Vincent Seny and Atigodey, John Selorm, Central Bank Digital Currency in Ghana, the e-Cedi: Disruptions, Opportunities and Risks (May 18, 2022). Dataking Policy Brief 006, Accra, Dataking Consulting, Available at SSRN: https://ssrn.com/abstract=4113179

King Carl Tornam Duho (Contact Author)

Dataking Consulting ( email )

Accra, +233
Ghana
+233 (Fax)

Stephen Asare Abankwah

Dataking Consulting ( email )

Accra, Greater Accra +233
Ghana

Gabriel Azu

Dataking Consulting ( email )

Accra, Greater Accra +233
Ghana
+233594116302 (Phone)

HOME PAGE: http://https://datakingconsulting.com/

Duke Ayim Agbozo

Dataking Consulting ( email )

Accra, Greater Accra +233
Ghana

Vincent Seny Duho

Dataking Consulting ( email )

Accra, Greater Accra +233
Ghana
+233594116302 (Phone)

HOME PAGE: http://https://datakingconsulting.com/

John Selorm Atigodey

Dataking Consulting ( email )

Accra, Greater Accra +233
Ghana

HOME PAGE: http://datakingconsulting.com/

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