Bank of Ghana was urged to stop the development of CBDC on the basis of ‘old-traditional silo financial thinking. Fintech Bitcoin News

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Afroblocks, a Ghanaian blockchain- and crypto association, has warned Bank of Ghana to resist the urge of developing a central bank digital cryptocurrency (CBDC). It is based on ‘old tradition silo financial thought’.

Afroblocs not consulted

Afroblocks (formerly Blockchain Society Ghana) instead wants the central bank to emulate “borderless and decentralized financial projects like modern cryptocurrencies”. Omar Majdoub is one of the cofounders of the association. This will increase the chances that the CBDC will succeed.

Majdoub D’Afroblocks’ words follow the recent publication of a press release by BOG in which it reaffirms its desire to be the first country in Africa to establish a CBDC. News has reported that the BOG has chosen a German company as its technology partner for its CBDC program. Giesecke Devrient is responsible for providing “the technology and solution that meets Ghana’s requirements”.

Afroblocks’ Majdoub said that Afroblocks wasn’t consulted, despite the BOG’s apparent willingness for them to work with organizations with relevant experience. Majdoub explained:

We were never consulted regarding this initiative. All we know is what was in the BOG public statements. The CBDC’s public details are not readily available. If you need our expertise, we are more than willing to help.

Ghana’s unclear position regarding cryptocurrencies

Afroblock co-founder and co-founder suggested that the BOG’s failure to clarify “whether cryptos and decentralized financing will play a part in their next CBDC”, means there has been no change. Changes in the country’s approach to crypto assets. Majdoub regrets that Ghana doesn’t regulate cryptocurrency. However, this lack of clarity creates an environment that is not favorable for cryptocurrencies.

Despite his apparent snub, Majdoub offered some advice to the BOG on what the central bank should do to ensure the success and sustainability of the e–cedi. Majdoub explained:

We advise them to explore the world of cryptocurrency and to get in touch with crypto communities both in Ghana and around the globe. They will be able to better integrate modern crypto into their CBDC. Many young Ghanaians are finding great opportunities in the international space, even in the midst the explosion of cryptocurrency.

Afroblocks also urged the BOG not to withhold “more information about the CBDC plans” from the public. The central bank must also “state very clearly its intentions with regard to cryptocurrencies”.

Do you agree with the BOG’s need to consult with players in Ghana’s blockchain space? We’d love to hear your thoughts in the comments section.

Credits to the images: Shutterstock. Pixabay. Wiki Commons

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