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Topic: Bank of Ghana to pilot CBDC with German securities printing firm G+D (Read 97 times)

legendary
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This is a step in the right direction and we need to see more of this.
And this coming as a government programme carries more weight and it would be safe to say that digital currencies could see light in the future.
But state owned digital currencies are really not what I pictured to be coming hope this isn't what will be trading soon.

As written in the other posts, at least for Ghana it doesn't look at all as a step in the right direction.
And you seem to be contradicting yourself too - if it's that good why wouldn't you use it in trading?!  Cheesy
member
Activity: 893
Merit: 43
Random coins :)
This is a step in the right direction and we need to see more of this.
And this coming as a government programme carries more weight and it would be safe to say that digital currencies could see light in the future.
But state owned digital currencies are really not what I pictured to be coming hope this isn't what will be trading soon.
legendary
Activity: 2212
Merit: 7064
Number of countries that are testing or planning to test this centralized digital coins is rising every day, and it all started with China.
People need to realize that all this CBDC digital coins are worse than current monetary system with cash, and everyone will loose all privacy using them.
I would refuse all those trials and instead suggest governments to add Bitcoin, that can't be controlled and no dictator can shut down your Bitcoin ''account'', just follow the example of Venezuela.
legendary
Activity: 2912
Merit: 6403
Blackjack.fun
So the politicians will move around some money, of which a big part will go to their pockets. Typical poor/corrupted country "job".
However, ... is internet so widely developed in Ghana? Or will they pilot it, then decide it's not possible to do it on full country scale?

I always have a bad feeling when undeveloped countries run to meet the hype, saw it even in my country how the solar madness started with the government giving away money only to suddenly realize both central and northern Europe is not really the place for solar panels, the same race with cultures for bio fuel in other countries where the forest ended being cut, normal produce decimated, government subsides after subsides only to be a total flop.
Back in the same area, the tens of cities that were supposed to be either the next Silicon Valley or Las Vegas, I think that there is not a single ex-soviet state that hasn't burned billions it trying to build one and many more across the globe.

Besides, 80 literacy rate, internet penetration at 50%, poverty line at 13% and only because the line is set at 1.9$ a day?
I think you would have better things to do than a CDBC.

Well, it’s cool ... Ghana does not look like a bad "test site" - good economic indicators (one of the ten largest gold producers), bauxite, manganese, oil, gas, ... The main sector is agriculture and there is the second position in the world in supply of cocoa beans ....

Raw material and agricultural exporter, that has less than 10% of processed goods and that imports everything needed in order to make those, from machinery to chemicals.
Plus:

Quote
Overall real GDP growth rate of 0.9 percent;
Overall non-oil real GDP growth rate of 1.6 percent;
End-period December year-on-year inflation of 11.0 percent;
Overall budget deficit (on cash basis) of 11.4 percent of GDP;
Primary balance deficit of 4.6 percent of GDP; and
End-period December stock of Gross International Reserves to cover at least the equivalent of 4.0 months of imports of goods and services.

No CDBC will be able to fix this!

hero member
Activity: 1666
Merit: 753
Not sure why anyone is even excited for CBDCs anymore.

Fact of the matter is that they are still fiat currencies, except they may adopt blockchain technology.

Governments absolutely love it because they can track all your moves, all your expenditures and savings. They can also use this system to impose negative interest rates which is obviously not possible with cash.

This is one instance where blockchain technology adoption isn't as positive as it seems, although I do expect the progress to continue.
legendary
Activity: 3752
Merit: 1864
Well, it’s cool ... Ghana does not look like a bad "test site" - good economic indicators (one of the ten largest gold producers), bauxite, manganese, oil, gas, ... The main sector is agriculture and there is the second position in the world in supply of cocoa beans .... Exports exceed imports. Almost 30 million people (potential users of the system). The infrastructure is well developed. In a word, it is very interesting to watch the project ...
legendary
Activity: 3668
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do you really afford to waste money on something that was not implemented yet in any country on a large scale?

I wouldn't be surprised if some money is basically stolen by being moved here and there and free services are marked as paid with large sums.
Since Ghana is testing out D+G proprietary CBDC solution it could be fair to be.. paid for that.
So the politicians will move around some money, of which a big part will go to their pockets. Typical poor/corrupted country "job".

However, ... is internet so widely developed in Ghana? Or will they pilot it, then decide it's not possible to do it on full country scale?


they save on cost for printing

They may indeed save the cost of printing, but still CBDC has to operate alongside with fiat, especially on country side.
On the other hand, for CBDC you need some infrastructure that also costs money...
legendary
Activity: 2912
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Blackjack.fun
With all the news about banks and countries exploring CBDC, I've always wanted to ask something, has any of those mentioned ever once how much the research, then the implementation, and then all the maintenance. For a normal deal when the central bank is doing everything this is not such a deal, but when the authorities are starting to contact private foreign companies it should raise some suspicion, especially since we're talking about countries who are experts in wasting money.
They have a 13.8% deficit and they expect another 10%, do you really afford to waste money on something that was not implemented yet in any country on a large scale?
I would sit and wait rather than testing this on my economy like a lab rat.

They won't be operating like crypto that is volatile and can make you money, I suspect that they're just trying to incorporate digitalization with fiat so they save on cost for printing and in turn cause the value of their fiat to deflate to a healthy point because they're going to make an artificial currency that is the CBDC.

Why do you assume there will be deflation? CBDC will not be capped.
member
Activity: 868
Merit: 63
CBDCs are truly digital currencies, but they are still as centralized as Fiats, all CBDCs will be subjected to governmental (central) control, this will make CBDC to be inflationary currencies, subjected to devaluation, resulting to price depreciation. In Africa, Ghana is working towards digital currency pilot, likewise Nigeria, but nothing special about CBDCs than been a modified form of Fiat, they are pegged with Fiats.

Unlike decentralized currencies like Bitcoin which are not subjected to central control, the price is affected by demand and supply while its supply is limited. Bitcoin as been appreciative and reaching all-time-high. We should still know that to have privacy, we need decentralized currencies like Bitcoin that is completely decentralized.
They won't be operating like crypto that is volatile and can make you money, I suspect that they're just trying to incorporate digitalization with fiat so they save on cost for printing and in turn cause the value of their fiat to deflate to a healthy point because they're going to make an artificial currency that is the CBDC.
copper member
Activity: 2856
Merit: 3071
https://bit.ly/387FXHi lightning theory
CBDCs are truly digital currencies, but they are still as centralized as Fiats, all CBDCs will be subjected to governmental (central) control, this will make CBDC to be inflationary currencies, subjected to devaluation, resulting to price depreciation. In Africa, Ghana is working towards digital currency pilot, likewise Nigeria, but nothing special about CBDCs than been a modified form of Fiat, they are pegged with Fiats.

They are probably also likely going to be at least identifiable by the government for who's sending money to who also which might be a problem - especially if they sell this data on.

I think they'd also add a level of anonymisation to banks and themselves so they can keep inflating the currency. There are additional problems with inflation in that it might not keep a currency rising in value to the extent you'd need for it to be competitive - you might need inflation in some cases of the major powers have it as your currency will be expected to track them by the market.
legendary
Activity: 1512
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CBDCs are truly digital currencies, but they are still as centralized as Fiats, all CBDCs will be subjected to governmental (central) control, this will make CBDC to be inflationary currencies, subjected to devaluation, resulting to price depreciation. In Africa, Ghana is working towards digital currency pilot, likewise Nigeria, but nothing special about CBDCs than been a modified form of Fiat, they are pegged with Fiats.

Unlike decentralized currencies like Bitcoin which are not subjected to central control, the price is affected by demand and supply while its supply is limited. Bitcoin as been appreciative and reaching all-time-high. We should still know that to have privacy, we need decentralized currencies like Bitcoin that is completely decentralized.
full member
Activity: 140
Merit: 128
The world is now getting evolve in digital currency other than the traditional local notes we operate on, it's a good news as things are now changing for good, we are in the era of technology development and very soon, it's operational usage and acceptability will outrun any other form of currency, Ghana govt. Has taken the next step of action towards digital currency implementation as below:
Quote
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 The Bank of Ghana (BoG) is making another step towards the development of a central bank digital currency (CBDC) by partnering with a German currency technology provider.

The BoG officially announced Wednesday that it signed an agreement with German banknote and securities printing company Giesecke+Devrient (G+D) to pilot a retail CBDC in Ghana, West Africa.

As part of the agreement, G+D will provide its proprietary CBDC solution known as Filia to pilot the issuance of a digital form of Ghana’s national currency, the cedi. The digital currency will be tested in a trial with local banks, merchants, payment service providers and consumers, as well as other related parties.

The project is part of Ghana’s digitization strategy, the “Digital Ghana Agenda,” aimed at digitizing data and government services for the country of 30 million people. Also known as e-cedi, the digital cedi aims to complement the country’s traditional national currency as a digital alternative. According to the announcement, the CBDC should facilitate payments without a bank account, contract or smartphone.

BoG governor Ernest Addison said that the e-cedi provides a great opportunity to create a “robust, inclusive, competitive and sustainable financial sector, led by the central bank.” “From all indications, the concept has a significant role to play in the future of financial service delivery globally. This project is a significant step towards positioning Ghana to take full advantage of this emerging concept,” he added.

Ghanaian Vice President Mahamudu Bawumia recently said that the African governments need to embrace digital currencies to facilitate trade throughout the continent. The official argued in late July that trade between African countries demands a “single central payment” system.

Source link:
https://cointelegraph.com/news/bank-of-ghana-to-pilot-cbdc-with-german-securities-printing-firm-g-d
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