Ghana pilots blockchain-based credentials and CBDC for global trade
The PoC was part of Project Desft (Digital Economy Semi-Fungible Token), an exploration from the BoG and Monetary Authority of Singapore into how technology can boost the participation of micro, small, and medium enterprises from developing countries in international trade.
Maxwell Opoku-Afari, first deputy governor, Bank of Ghana, says: "Project Desft is aimed at supporting SMEs in Africa to engage in international trade by removing significant obstacles they face, such as establishing trust with overseas trade partners and obtaining support in cross-border payments and supply chain finance."
The project has been focusing on cross-border trade between the two nations using the UN-developed, blockchain-based Universal Trusted Credential, the Singaporean Dollar stablecoin, the Ghanaian CBDC (eCedi) and purpose-bound money.
Giesecke+Devrient delivered its Filia platform for the CBDC part, while local commercial lender Fidelity Bank offered banking and exchange services for the eCedi.
G+D says the PoC demonstrated a direct transfer between the transacting parties, eliminating the need for the long chain of intermediaries and corresponding high costs in cross-border payments.
Wolfram Seidemann, CEO, G+D Currency Technology, says: "This proof of concept demonstrated how combined multiple challenges of international trade could be solved: programmable payments, foreign currency exchange and interoperability with cross-border payment and credentials platforms. This is a great example of how CBDC can drive economic growth, especially in the SME sector."
