BoG transacts cross-border trade with eCash

The Bank of Ghana (BoG) says it has successfully conducted a cross-border trade transaction payment with its digital currency, the eCedi.

The Director of Fintech and Innovation at the BoG, Kwame Oppong, who announced this in Accra on Wednesday as part of the 3i Africa Summit 2024, said the transaction which was executed in April this year, was done with the stable coin of Singapore under the Digital Economy Semi-Fungible Token (DESFT) project.

He explained that the eCedi is an electronic version of Ghana’s currency and one digital currency was equivalent to one Cedi and was currently being piloted before a national rollout.

Mr Oppong said eCedi formed part of efforts of the government to facilitate local and cross-border trade and payment.

Mr Oppong said the live eCedi transactions was done through the proposed Ghanaian domestic retail Central Bank Digital Currency (CBDC) platform.

The Director of Fintech and Innovation explained that the cross-border trade transaction payment affirmed the potential of the eCedi to interface with various cross-border credential and payment platforms.

“With its interoperability with the DESFT system, and verifiable credentials via Universal Trusted Credentials, the eCedi has the potential to facilitate the participation of Ghanaian Micro, Small, and Medium Enterprises in international trade in a cost-effective manner,” he stated.

According to Mr Oppong the prospective introduction of the eCedi was poised to significantly enhance Ghana’s dynamic payment ecosystem, fostering inclusive growth and innovation while improving consumer experiences.

Giving a background of the project, the Director of Fintech said the BoG in collaboration with Monetary Authority of Singapore initiated the DESFT project in June 2023 and the first phase of the project saw the design and development of a trusted credential system.

He explained that DESFT project was aimed at supporting Small and Medium-sized Enterprises (SMEs) in Africa to engage in international trade by removing significant obstacles they faced, such as establishing trust with overseas trade partners and obtaining support in cross-border payments and supply chain finance.

That, Mr Oppong said enabled SMEs to transform key information such as basic credentials, licenses, certificates, and trade records into verifiable digital credentials on a secure distributed ledger system, allowing potential trade partners and financial institutions to efficiently verify the authenticity of such information.

The three-day 3i conference dubbed ‘Innovation, Investment and Impact’, and which ended on Wednesday, was organised by the Bank of Ghana, Development Bank Ghana and Elevandi, a subsidiary of the Monetary Authority of Singapore on the theme “Unleasing Africa’s Fintech and Digital Economic Potential.”

It was attended by Heads of State, ministers, Central Bank governors, members of the diplomatic corps, the private sector and captains of industry and cross section of the public.

BY KINGSLEY ASARE