Ghana’s Vice President: African Countries Should Embrace Digital Currencies

The Vice President of Ghana – Dr. Mahamudu Bawumia – opined that embracing cryptocurrencies would be beneficial for the trade sector on the African continent. He believes that digitization is the tool that will help the economies to revive again after the devastating consequences of the COVID-19 pandemic.

Digital Currencies Can Improve Trade

During the Fifth Ghana International Trade and Finance Conference in the capital Acra, the nation’s Vice President argued that African governments should embrace virtual currencies to boost trade and strengthen other productive sectors of their economies. On top of it, they would increase financial activities, establish macroeconomic stability, and promote growth.

He reminded that currently, African countries struggle to exchange goods as the process is expensive, slow, and not highly efficient. With digital currencies at its core, a “Single Central Payment” platform would change that and establish a stable financial network for the continent.

According to Dr. Bawumia, digitization was a key factor that preserved the economy during the worst of the COVID-19 pandemic and assured that it is a main goal for the current presidency:

“Digitisation has also become one of the most consequential policies of the Nana Akufo-Addo government. When the scourge of the COVID-19 pandemic hit and forced many economies into partial and total lockdowns, it reinforced the need to pursue digitization.”

Additionally, the Vice President pointed out that the Central Bank had rolled out a couple of systems through its Ghana Interbank Payment and Settlement Systems (GHIPSS). He raised hopes that CBDCs across the continent would work successfully side-by-side:

“I am hopeful that the rollout of the Pan – African system will synchronize successfully with the payment systems architecture developed by Central Banks across Africa and bring about a reduction in cost, time variability, and decreased liquidity requirements of commercial banks and central banks settlements.”

Tanzania Should Also Strive for Crypto Adoption

Similarly to his Ghanaian colleague, the President of Tanzania – Samia Suluhu Hassan – recently outlined the nation’s need for cryptocurrency adoption. She reminded that the East African region, where the country is located, is not as advanced as other areas and urged the financial chiefs to start working on that matter:

“I know that throughout the nation, including Tanzania, they have not accepted or started using these routes. However, my call to the Central Bank is that you should start working on that development.”

President Hassan backed up the belief in digital assets as, in her opinion, they will shape the future of finance. The Central Bank of Tanzania must put its efforts in that direction and act as soon as possible:

“The Central Bank should be ready for the changes and not be caught unprepared.”