Kwame Oppong (head of fintech innovation at Bank of Ghana) says that as more countries progress in developing and implementing central bank digital currency (CBDCs), Ghana’s central banks aims to continue and complete its research on CBDCs to achieve financial inclusion.
Oppong explained the reasons behind West Africa’s move into CBDCs in an interview with Elisha Owusu Akyaw, Cointelegraph’s Africa Money & DeFi Summit. The government official stated that their primary goal is to complete testing and give citizens the chance to use a “decent method of payment”. He said that:
“Our goal with CBDC is to complete testing it. We have seen the results. The results will be reviewed every time we revisit the study in the future. However, the real reason we do it is to increase financial inclusion.
Officials stated that participants could buy products and services from merchants anywhere in Ghana, including offline pilots of the “E-Cedi” Ghana’s CBDC. Oppong believes another benefit to a CBDC is the ability to generate the data from the participants. According to Oppong, this data can be used by banks to help individuals get loans.
Oppong also pointed out the potential cost savings that a CBDC could bring to the country. Oppong stated that CBDCs have a lot potential to reduce costs due to their instant settlement feature.
The central bank official reiterated the fact that CBDC has potential benefits, but the world is still in a stage where different entities are trying to decide its pros and cons. He said, “I believe as a society we must decide whether it’s beneficial for us or not.”
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— Cointelegraph (@Cointelegraph) September 27, 2022
Oppong spoke out about stablecoins during a panel discussion titled, “Stablecoin Crypto & CBDC: Risks and Opportunities for Ghana.” Oppong noted that stablecoins could play an important role in finance, especially when it comes to cross-border transactions.
The executive also highlighted the simplicity of crypto’s user interface as one of its most appealing features. He pointed out that many entities are beginning to understand the importance of blockchain research and how it can be used in their business.
Related: Russia plans to use CBDC in international settlements with China:
There are many people who support CBDCs. However, others believe they are harmful to the public. Bitcoin Policy Institute, an American think tank, has recently stated that Bitcoin (BTC), and stablecoins, are better options than CBDCs.