Afroblocks, the national blockchain association of Ghana has specifically warned the central bank of Ghana to refrain from developing the proposed CBDC on the basis of traditionally old methods as it would jeopardize the purpose of the CBDC. According to Afroblocks, the Bank of Ghana has been utilizing the methods which are usually adopted in any financial system.
Bank of Ghana (BOG) has been warned by the national blockchain association of the country, Afroblocks, to carefully proceed with the CBDC project. BOG aims to conduct initial testing of the national CBDC while it is in its development phase. BOG has also revealed recently that it wants to become the first country in the African region to provide for CBDC. However, Afroblocks is concerned that the wish of BOGs could hurt the CBDC project very badly. It has grown concerns that BOG would be testing the CBDC at an early stage which is not needed for the time being.
Afroblocks has suggested to BOG that the CBDC is not developed on the basis of old methods and tools. Instead, it has been done on the basis of modern tools, equipment, and infrastructure. The old methods are for the existing financial system which is currently available in the country. However, the digitalization of a currency requires out-of-the-box thinking and the adoption of unique methods. Omar Majdoub, one of the founders of Afroblocks, stated that BOG should need to work on projects which are decentralized and borderless. He said that if BOG will be able to work on the suggested model, then Ghana’s CBDC project will be a successful one.
Majdoub’s comment came when BOG had earlier revealed its intention to become the African leader in launching the CBDC.
Meanwhile, it has been confirmed that a fintech company, particularly from Germany, Gisecke Devrient, has been engaged by the BOG. This company has been assigned the task of testing Ghana’s under-development CBDC. In fact, whatever technical assistance and solutions are required for the successful testing of CBDC, will be rendered by this German company.
On the other hand, Majdoub has suggested that he has failed to understand why Afroblocks have been sidelined. He said that being an association of the digital currency industry, BOG should have consulted with it. However, since the inception of the CBDC project, Afroblocks haven’t been taken into confidence by the BOG. He commented that being an essential part of Ghana’s digital market, Afroblocks should have been taken on board. However, Afroblocks had never been told by BOG about the progress of the undergoing project. In fact, all the information with regard to Ghana’s CBDC was taken from the print and electronic media, told Majdoub.
He urged the BOG to utilize their expertise and knowledge for which the association is willing to contribute voluntarily.