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Digital currencies gain weight in the political arena

Ghana's Vice President Mahamudu Bawumia endorsed CBDCs and proposed creating a platform where all the continent's digital currencies converge.

In the last year and a half, the crypto market has boosted significantly across Africa, with several countries posting record numbers in cryptocurrency trading and local governments advancing on central bank digital currencies (CBDC). This last point is on the rise again after the support of the Vice President of Ghana .

Mahamudu Bawumia , Ghana’s second president, supported the CBDC and assured that they would be a fundamental tool to reactivate the commercial sector of the continent . After the coronavirus pandemic, Africa was one of the worst hit regions in health and economic terms, and the one that is having the hardest time to recover.

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According to the Ghanaian official, digital currencies would allow the governments of the region to increase their financial activity , advance on the long-awaited macroeconomic stability and promote the growth of the commercial structures of each country.

“When the scourge of the COVID-19 pandemic hit and forced many economies to crash partially and fully, it reinforced the need to seek digitization, ” Bawumia said during the Fifth Ghana International Finance and Trade Conference, held in Accra.

The vice president made a self-criticism at the regional level about financial processes, which are becoming “costly, slow and not very efficient . ” In this sense, he pointed to the creation of a “ single central payment ” platform , where all the CBDCs on the continent work together and allow the creation of a stable financial network.

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“ I am hopeful that the implementation of the pan-African system will be successfully synchronized with the architecture of payment systems developed by central banks in Africa and will result in a reduction in cost, time variability and a decrease in liquidity requirements of commercial banks and central bank settlements , ” Bawumia added .

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