Kwame Oppong, the Director of Fintech and innovation Office at the Bank of Ghana, has hinted that, the central Bank has successfully complemented the cross-boarder transaction payment using the digital currency, eCedi, and an approved stablecoin from Singapore.
According to the director of fintech and innovation, the successful completion of the cross-border transaction forms part of the first Proof of Concept (POC) as part of the Project Digital Economy Semi-Fungible Token (DESFT) which aims at supporting SMEs in Africa to engage in international trade without fear such as building relationships.
Addressing the Press during the 3i Africa Summit on Wednesday, May 15, 2024, Kwame Oppong underscored that, the cross-border transaction was a collaborative programme with MAS initiated Project DESFT in June 2023, however, was expanded with phase 2 in April 2024 with successful completion of digital currency.
“Expanding upon this groundwork, in April 2024, Phase 2 of the Project DESFT successfully executed a cross-border trade between Ghana and Singapore, leveraging the DESFT solution, Universal Trusted Credentials (UTC), a Singapore Stablecoin (xSGD), the recently piloted Ghanaian Central Bank Digital Currency (CBDC), the eCedi, and the Purpose Bound Money (PBM) protocol.”
“The live transactions further demonstrated the feasibility of utilizing the proposed Ghanaian domestic retail CBDC platform, the eCedi in cross- border transactions. This affirms the potential of the eCedi system demonstrated for future interoperability with various cross-border credential and payment platforms. The prospective introduction of the eCedi is poised to significantly enhance Ghana’s dynamic payment ecosystem, fostering inclusive growth and innovation while improving consumer experiences.”
“With its interoperability with the DESFT system, and verifiable credentials via UTC, the eCedi has the potential to facilitate the participation of Ghanaian Micro, Small, and Medium Enterprises (MSMEs) in international trade in a cost-effective manner.”