The Vice President of Ghana, Dr Mahamudu Bawumia, has said African economies need digital currencies backed by central banks to give credibility to transactions.
Addressing participants at the opening of the International Trade and Finance Conference (GITFiC 2021) in Accra on Tuesday, Dr Bawumia said, with the advent of digitisation, digital currencies springing up on the African continent is imminent but warned that African economies need central bank-backed digital currencies, and not cryptocurrency.
Responding to a question on the readiness of the continent for a digital currency, especially with the presence of the AFCFTA, Dr Bawumia stressed the imminent adoption of digital currencies but added that such moves should be backed by African Central banks, just as the Bank of Ghana has initiated a pilot digital currency.
“Digitisation and the advent of digital currencies is something that is coming. The central bank of ghana is beginning a pilot digital currency, and I think it will ultimately be the way to go for Africa,” Dr Bawumia said.
He further said that digital currency that the central banks back would give credibility to transactions, “and I think this is where we should be heading, and the Bank of Ghana is leading the way.
“I expect other central banks to come forward with this in the future. It is the way to go,” Dr Bawumia stated
The conference was attended both physically and virtually by senior officials of African central banks, the African Union, West African Monetary Institute members of the Diplomatic Corps, and other key stakeholders in the African Continental Free Trade Area (AfCFTA).
Rex Mainoo Yeboah, ISD