Governor of the Bank of Ghana (BoG) Dr Ernest Addison has observed that the information and communication technology space is changing rapidly and impacting every segment of global activities.
He said, each year welcomes a new digital technology solution that tends to revolutionise the way of life.
Despite the dizzying speed of such innovations, Dr Addison said, it is a force for good and a key determinant of the development trajectory.
“Therefore, our ability to appreciate, adopt, and adapt to technology will help position the financial services industry to drive national development efforts,” he stated.
Against this background, he further indicated, the Bank of Ghana has, in the past few years, championed policies and implemented financial market infrastructures that have created a supportive environment for the digital delivery of financial services.
“Currently, the financial sector can boast of a variety of digital financial services, including payment, credit, savings, and investment products that are offered by banks and FinTechs. New business models have emerged through FinTech channels and removed barriers to micro-credit as well as paved way for affordable and convenient inward remittance services.
“These interventions have fostered financial inclusion in the country, evidenced by the phenomenal improvement in financial access from 41% in 2014 to 68% in 2021, according to the Global Findex Report of the World Bank,” Dr Addison said.
This statistic also demonstrates the potential of technology in facilitating financial development and improving inclusive economic development, societal welfare, as well as poverty reduction, he added.
“Despite the progress made, much remains to be done to meet the financial service needs of every citizen in meaningful ways. This therefore calls for an innovative mindset, creativity, and collaboration in exploring novel solutions of which a central bank digital currency is promising. It is therefore our belief that the Bank’s CBDC will further push the frontiers of financial inclusiveness in the country.
“Indeed, Bank of Ghana’s CBDC exploration journey is grounded on several policy imperatives, including financial inclusion, safety and efficiency of payments, and the growing digitalisation of the Ghanaian economy. Beginning with the publication of a design paper, the Bank of Ghana communicated in clear terms its concepts of CBDC and solicited comments on how to proceed with a CBDC pilot project that will meet the needs and aspirations of Ghanaians,” he said while speaking at the eCedi Hackathon awards dinner in Accra, last Thursday, December 14.