Bank of Ghana teams up with University of Ghana, utilizing scholarly expertise to bolster regulatory authority over digital currencies

The Bank of Ghana (BoG) and the University of Ghana (UG) have joined forces in a groundbreaking partnership aimed at strengthening economic research, policy formulation, and financial innovation. This collaboration, which was announced recently, will equip students and policymakers with the knowledge needed to sustain a digital currency ecosystem.

Under this partnership, the BoG will leverage academic input to strengthen its capacity to design, test, and regulate digital currencies. One of the key focuses will be Ghana's Central Bank Digital Currency (CBDC) - the e-Cedi. The e-Cedi, launched in pilot form under the Digital Ghana Agenda, is intended to provide a secure, inclusive, and accessible digital version of the Cedi.

The partnership is expected to delve into the impact of the e-Cedi on monetary stability, inflation control, and payment systems. Academic expertise from UG will contribute to building stronger cybersecurity safeguards and legal structures for digital transactions. UG will also help design frameworks that ensure the e-Cedi bridges the financial inclusion gap by studying how rural and unbanked populations interact with the digital currency.

The Bank of Ghana Chair in Finance and Economics, currently held by Professor Yegandi Imhotep Paul Alagidede, will drive cutting-edge research and mentor the next generation of financial thinkers. The identity and field of study of the next student to be mentored by Professor Alagidede are not specified in the available information.

The BoG-UG partnership demonstrates Ghana's forward-thinking approach to economic governance, where research informs policy, policy drives innovation, and innovation builds inclusivity. This approach is evident in the BoG's Innovation and Regulatory Sandbox, powered by EMTECH, which aims to foster innovation in the financial sector. Applications for the first cohort of this sandbox will open on February 13, 2023.

More than 130 countries are exploring or piloting Central Bank Digital Currencies (CBDCs). Ghana positions itself among the few African nations ensuring CBDC adoption is grounded in rigorous scholarship. The Governor of the BoG, Dr. Johnson Asiama, emphasized the need for credible institutions and agile, intelligence-driven central banks. He also highlighted the upcoming regulations for Virtual Asset Service Providers (VASPs) and the role of trust in monetary systems while adapting to technological changes.

The BoG was named the Central Bank of the Year 2019 for its emphasis on the growth of digital payments. This partnership could set the stage for Ghana to lead Africa in digital currency adoption and financial modernization. The Governor charged Professor Alagidede to help push the frontiers of monetary research and encouraged students to engage actively in national economic discourse and policymaking. This collaboration is not just about traditional economic research but also about preparing for the digital future of money.

Bank of Ghana teams up with University of Ghana, utilizing scholarly expertise to bolster regulatory authority over digital currencies