According to reports, the Bank of Ghana (BoG) has offered assurances that the upcoming eCedi does not spell doom for other financial players, particularly mobile money operators.
Clarence Blay, the Asssistant Director of Fintech and Innovation at BoG, while attending a stakeholder forum organized by Mobile Money Ghana Limited, a subsidiary of MTN Ghana Limited, reportedly indicated that the bank is keen to protect the current financial ecosystem in Ghana, and the eCedi would not compete with existing players but would rather complement the system.
“One of the critical principle guiding the roll out of the eCedi is to complement already existing mobile money operations. eCedi will not supplant already existing platforms, but rather enhance Mobile Money services, making it more vibrant and efficient.”
– Assistant Director, Fintech and Innovation, Bank of Ghana (BoG)
If that was not enough reassurance, the official added that the Bank of Ghana was looking to boost the operations of mobile money operators in Ghana saying that some players in the industry had attested to some of the expected benefits to their mobile money operations.
According to the Assistant Director of Innovation, the benefits include:
- Cost reduction
- Improve efficiency of settlements
- Deepen interoperability
- Integrating payment service delivery
At the same time, Eli Hini, the CEO of MTN’s mobile money operations in Ghana was in agreement with the Bank of Ghana official allaying jitters over the CBDC’s potential impact on the thriving industry.
According to Hini:
“We believe the proper implementation of eCedi will improve on the efficiency of our settlement systems. Secondly the eCedi will reduce the carrying of cash by agents. With an e-Cedi account, the transfer of cash will speed up transactions. Lastly, the digital currency will fast-track cross border trade, while reducing the risk of carrying bulk cash.”
– CEO, Mobile Money Ghana Limited
Ghana, alongside Kenya, is the leading country in mobile money adoption globally, and the World Bank has recognized Ghana as the fastest-growing mobile money market in Africa over the last 5 years.
The study, Five Strategies for Mobile-Payment Banking in Africa, found that transactions via mobile wallets and phones were the equivalent of:
- 87% of GDP in Kenya
- 82% of GDP in Ghana
In Kenya however, the Central Bank of Kenya Governor is treating CBDCs with caution with the apprehension that it could affect the country’s vibrant mobile money sector.
