TL;DR Breakdown
- Ghana’s new central bank digital currency, the digital cedi, seems to have lost in the crypto space owing to the absence of clarity.
- The Bank of Ghana had released the digital cedi after forming a partnership with a German firm, Giesecke+Devrient.
- According to Afroblocks, the Bank has not been able to implement proper technology to further the adoption of the cryptocurrency.
The widespread popularity of CBDCs or central bank digital currencies had forced the Bank of Ghana to take a step towards the release of their CBDC, the digital cedi. Although, it seems that the release of this CBDC is being viewed with skepticism as an in-house independent blockchain association comments on the release.
According to the former Blockchain Society Ghana or Afroblocks, the Bank of Ghana has not been able to implement and further the adoption of its CBDC due to the lack of clear performance standards. For this reason, the digital cedi is being viewed with skepticism, and Afroblocks has tried to guide the BOG towards a clearer path.
The digital cedi needs to follow other cryptocurrencies
According to Afroblocks, the Bank of Ghana should keep in mind that the digital cedi will only be properly adopted when it follows the principles that other cryptocurrencies follow, i.e., decentralization and borderless.
Afroblocks asked the Bank to adhere to innovation without falling apart because of being stuck to beliefs and principles that are no more valid in the financial market. The founder of Afroblocks has also come out to comment on the lack of clarity of the digital cedi.
“Public details on the CBDC are very sparse. We would be more than willing to contribute our expertise if called upon.”
Omar Majdoub, the co-founder of the blockchain organization
Another issue that bothers Afroblocks is the country’s unclear stance on the regulation of cryptocurrencies and their adoption as well as the distribution of cryptocurrencies.
