Ghanaian bank tests digital certifications for international trade: implications for SMEs in Africa

Ghana’s Central Bank Successfully Tests Digital Credentials for International Trade

The Bank of Ghana (BoG) recently announced the successful completion of conceptual tests regarding the use of digital credentials for international trade and cross-border payments based on the Central Bank Digital Currency (CBDC). The Desft project (Digital Economy Semi-Fungible Token) was an initiative aimed at increasing the participation of micro, small, and medium enterprises from developing countries in international trade through the use of advanced technologies.

The Purpose of the Desft Project and Its Significance for SMEs in Africa

The First Deputy Governor of the Bank of Ghana, Maxwell Opoku-Afari, emphasized that the Desft Project aims to support SMEs in Africa in participating in international trade by eliminating significant barriers. This includes building trust with foreign trading partners and receiving support in cross-border payments and supply chain financing.

Technological Aspects of the Project

The project focused on international trade between two countries, utilizing decentralized, blockchain-based Universal Trusted Certificate from the United Nations, Singapore’s stablecoin, the CBDC of Ghana (eCedi), and earmarked funds.

Conclusions from the Conducted Tests

The company Giesecke+Devrient provided the Filia platform for the CBDC component, while the local commercial lender Fidelity Bank supported the project by offering banking services and currency exchange for eCedi. The tests demonstrated the possibility of direct transfer between transaction parties, eliminating the need for a long chain of intermediaries and associated high costs in cross-border payments.

Significance of the Tests for International Trade

The CEO of Giesecke+Devrient Currency Technology, Wolfram Seidemann, emphasized that the conceptual test showed how many challenges of international trade could be addressed. Programmable payments, foreign currency exchange, and interoperability with cross-border payment and credential platforms are key aspects that can be optimized through the use of CBDC. Successful implementation of these solutions can contribute to economic growth, especially in the SME sector.