eCedi will not disrupt Mobile Money transactions – BoG

The Bank of Ghana says the implementation of the Central Bank Digital Currency (CBDC) or eCedi will not disrupt or collapse the business of Mobile Money operations.

Speaking at a stakeholder forum organised by Mobile Money Ghana Limited, a subsidiary of MTN Ghana Limited, Assistant Director of Fintech and Innovation at Bank of Ghana, Clarence Blay, emphasised that the Central Bank is committed to protecting businesses in the digital payment ecosystem, hence the future implementation of the eCedi will not disrupt mobile money operations.

“For the Central Bank, one of the critical principle guiding the roll out of the eCedi is to complement already existing mobile money operations. eCedi will not supplant already existing platforms, but rather enhance Mobile Money services, making it more vibrant and efficient.”

He added that the platform seeks to boost the operations of Mobile Money operations, and consequently promote digital inclusion.

“A lot of players in the Mobile Money sector have attested that the eCedi or CBDC will help in cost reduction, improve the efficiency of settlements and deepen interoperability. It will also enhance the integrity of payment service delivery in the country”, he mentioned.

Meanwhile, the Chief Executive Officer of Mobile Money Ghana Limited. Eli Hini has allayed fears that the Central Bank digital currency or eCedi will have a negative impact on MoMo. 

He added that the digital currency will rather improve the efficiency of settlements, reduce the carrying of cash and risks it poses, as well as promote cross-border trade. 

“We believe the proper implementation of eCedi will improve on the efficiency of our settlement systems. Secondly the eCedi will reduce the carrying of cash by agents. With an e-Cedi account, the transfer of cash will speed up transactions. Lastly, the digital currency will fast-track cross border trade, while reducing the risk of carrying bulk cash”, he explained.

He further added that technology is evolving and as such all players in the ecosystem must position their businesses to embrace the Central Bank Digital Currency.

Speaking on the readiness of the banking industry in the implementation of e-Cedi, Martha Acquaye, Head of Digital and Inclusive Banking at CalBank said the innovation will greatly improve operations of the banking industry.

“As banks, we are very well prepared to contribute our portion in this innovation to make it work”, she said.

The Chief Executive officer of IT Consortium Romeo Bugyei, also reiterated the speed in access of funds through settlements.

This he believes will solve liquidity challenges.  

As the financial world goes digital, the Central Bank’s digital currency, is an initiative to promote a cashless economy, while enhancing digital payments across the country.

Source: Myjoyonline