Ghana’s vp Dr. Mahamudu Bawumia believes that African governments must embrace digital currencies to facilitate commerce all through the continent.
As reported by Ghanaweb Bawumia outlined his argument throughout the Fifth Ghana Worldwide Commerce and Finance Convention, which boasted the theme of “Facilitating Commerce and Commerce-Finance in AfCFTA; The Function of the Monetary Providers Sector.” He argued that commerce between African nations calls for a “single central cost” system. At present, shifting items over African borders is expensive and time-consuming. A digital funds system, Dr. Bawumia believes, would rectify these points.
“Digitization has additionally change into one of the vital consequential insurance policies of the Nana Akufo-Addo authorities,” mentioned Dr. Bawumia.
“When the scourge of the COVID-19 pandemic hit and compelled many economies into partial and whole lockdowns, it strengthened the necessity to pursue digitization.”
The Vice President additionally mentioned Ghana’s current cost initiatives, akin to Cellular Cash Interoperability. Dr. Bawumia notes these companies have “proven that extra folks may be financially included, and this must be rolled out throughout Africa to make sure the expansion of the AfCFTA imaginative and prescient.”
Earlier this yr, The Financial institution of Ghana (BoG) revealed it has a central financial institution digital forex (CBDC) in growth. Dr. Bawumia famous the financial institution’s intent and believes it’ll carry the nation credibility within the digital house.
African nations have lengthy been exploring crypto and different types of digital forex. Nigeria is planning its own CBDC referred to as GIANT, set to launch this October, even after its central financial institution banned financial institutions from working with crypto exchanges. Tanzania, which banned cryptocurrencies again in 2019, has plans to reverse its course and implement crypto-positive regulation after its President, Samia Suluhu Hassan, spoke favorably of Bitcoin.