Ghana is attempting to create offline capabilities for its upcoming central bank digital currency (CBDC) in order to boost its adoption across the country.
Kwame Oppong, the Bank of Ghana’s head of fintech and innovation, said during the Ghana Economic Forum on Monday that the country’s digital currency “e-cedi” will allow offline transactions.
Offline functionality, according to Oppong, will enable Ghanaians without reliable access to energy or internet connectivity to embrace the country’s CBDC.
Oppong said the e-cedi could also be used in an offline environment with the help of smart cards.
A smart card is a credit card-sized plastic card containing a microchip that allows the user to transact with a preloaded balance.
DAI for calamity relief
Oxfam has been testing a similar approach to facilitate payments using the decentralized stablecoin DAI to provide environmental catastrophe relief.
According to World Bank data from 2019, 85% of Ghanaians had reliable access to power at the time, whereas just 52% had an internet connection.
BoG stated in August that it has teamed up with Giesecke + Devrient (G+D), a German financial firm, to trial a retail CBDC in Ghana.
Crypto to boost trade
During the Fifth Ghana International Trade and Finance Conference in July, Ghanaian Vice President Dr. Mahamudu Bawumia urged African governments to adopt digital currencies as a way to boost trade throughout the continent.
Local use of decentralized cryptocurrencies is also on the rise, according to Chainalysis, which estimates that Africa’s cryptocurrency industry has expanded by more than 1,200% since last year.
Image courtesy of Cointelegraph News/YouTube