The financial landscape of Ghana has undergone a seismic shift over the last decade moving from a cash dominant society to one where digital transactions form the very foundation of the economy. According to the Bank of Ghana electronic payments have graduated from being a convenient alternative to becoming the central pillar of the financial ecosystem of the nation. This critical observation was made by Dr Zakari Mumuni who is the First Deputy Governor of the Bank of Ghana during his address at the recent Cedi at 60 International Currency Conference. While presenting a strategic paper on the future of the money of Ghana specifically the Digital Cedi Dr Mumuni highlighted that for households and small businesses and large corporations alike digital channels are no longer optional as they are the primary method of daily transaction.
To illustrate this radical transformation Dr Mumuni pointed to staggering statistics regarding Mobile Money. In 2015 mobile money transactions represented a mere 3.4 percent of the value flowing through the Real Time Gross Settlement system. Fast forward to 2024 and that figure has skyrocketed to nearly 50 percent. This data confirms that the digital payment ecosystem is becoming faster and simpler and widely interoperable. With digital payments expanding at such a rapid pace the Deputy Governor argued that the introduction of the eCedi is not just an innovation but a necessity. He described the proposed state supported digital currency as the next frontier for Ghana. Unlike private mobile wallets the eCedi offers a sovereign and secure framework backed by the central bank.
The vision for the eCedi is to bridge the gap between the banked and the unbanked populations. Dr Mumuni emphasized that it would provide a more affordable alternative for digital payments specifically targeting underserved populations in rural areas. Furthermore it serves as a launchpad for financial technology companies to innovate creating new solutions for digital commerce that can drive national productivity. Beyond convenience for citizens the eCedi offers macroeconomic benefits. Dr Mumuni noted that a digital currency would significantly enhance the transmission of monetary policy. It would allow the central bank to monitor money supply more accurately and react faster to economic changes.
The readiness of Ghana for this digital leap is not accidental but is the result of two decades of deliberate infrastructure building. The journey began with the Ghana Interbank Settlement System to improve banking liquidity. This was followed by the 2007 establishment of GhIPSS which introduced the Automated Clearing House and the e zwich biometric card and the Gh Link system. The ecosystem matured further with the arrival of Mobile Money in 2009 and the revolutionary implementation of Mobile Money Interoperability in 2018 which allowed seamless transfers across different networks and bank accounts. Backed by robust foundations including the National ID card and a digital addressing system and the FinTech and Innovation Office established in 2020 the Bank of Ghana believes the nation is uniquely positioned to adopt the eCedi and lead the region in the digital financial revolution.