The Bank of Ghana has taken a different approach to building its CBDC with news emerging that the Bank of Ghana is pursuing a token-based approach for the CBDC, in addition to building it on the Hedera Hashgraph network.
Hedera Hashgraph is a blockchain network seeking to serve as a platform on which anyone can transact and deploy applications, but where a group of businesses oversee the software. Unlike traditional blockchains, the Hedera network allows only approved nodes to participate in determining transaction history.
Moreover the eCedi operates on a token-based system, in contrast to the account-based model used by other Central Bank Digital Currencies (CBDCs), like the eNaira. This means that the eCedi is in the form of tokens that can be stored locally on a mobile phone or a card, rather than being held in accounts managed by the central bank or designated intermediaries.
The Bank of Ghana (BoG) is responsible for producing eCedi and distributing it to third parties, including banks and merchants, who then pass on the Central Bank Digital Currency (CBDC) to consumers. Additionally, the bank noted that eCedi wallets are designed to be fully accessible even in offline mode.
In an account-based CBDC system, users hold accounts directly with the central bank, similar to how commercial banks hold reserves with the central bank. Instead of using tokens, transactions in account-based CBDCs are recorded in a centralized ledger maintained by the central bank. When users transact, the ledger is updated to reflect the changes in their account balances.
The news about the CBDC was revealed at a recent webinar information session the bank held in collaboration with EMTECH, concerning the eCedi Hackathon announced in October 2023.
🇬🇠CBDC HACKATHON | Bank of Ghana Launches eCedi Hackathon as Part of CBDC Research
The hackathon, in partnership with EMTECH, will span a period of 12 weeks and aims to assemble teams comprising programmers, designers, engineers, and various financial experts whose solutions… pic.twitter.com/P5a2qtHAuu
— BitKE (@BitcoinKE) October 10, 2023
Registration for the eCedi hackathon began in early October 2023 and the program will run for a duration of 12 weeks, culminating in an awards ceremony for the hackathon winners in December 2023. The initial selection process is scheduled for late October 2023 after a deadline extension for submitting concept notes was approved.
Participants who successfully pass the first stage will participate in a pitch session in early November 2023 with a second round of selection is planned one week later. Those who make it through the second stage will have a 21-day window to develop prototypes of their solutions and present demos in early December 2023, leading up to the finals in December 13 2023.
Flutterwave and the Hedera Hashgraph recently announced a partnership that will see the African fintech integrate USDC settlements via the Hedera blockchain network.
LAUNCH | Flutterwave to Integrate Payments Settlements with USDC on Hedera Blockchain
Flutterwave, Africa’s largest payment infrastructure, has processed over 400 million transactions in excess of $25 billion and serves more than one million businesses.https://t.co/MtMo6P4gLX… pic.twitter.com/xyfVGBAekJ
— BitKE (@BitcoinKE) October 9, 2023
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