The Central Bank of Ghana (BOG) recently announced the successful completion of the first proof of concept (POC) within the Project DESFT (Digital Economy Semi-Fungible Token) solution. The solution demonstrated the use of digital credentials for international trade and cross-border payments.
The Project DESFT focuses on cross-border trade between nations leveraging the universal trusted credential, the Singaporean Dollar stablecoin (XSGD), the Ghanaian CBDC (eCedi) and purpose-bound money (PBM) in international payment transactions. The experiment was a collaborative effort involving numerous financial institutions, fintech and technology companies. In Ghana, Giesecke+Devrient (G+D) delivered its secure technology platform Filia for the CBDC part, which was deployed by the BOG.
As part of the project, the domestic retail Central Bank Digital Currency (CBDC) platform of Ghana, which is based on Giesecke+Devrient´s (G+D) Filia solution, was utilized. It proved the viability of the Ghanaian eCedi in cross-border transactions between Ghana and Singapore.
The project is transformational in the respect that it combines tokenization and digital currencies and also in the effectiveness that pertains to cross-border transactions. The credential and supply chain financing as well as the payment parts are tackled in the Project DESFT.
The Ghanaian CBDC, eCedi, is a crucial enabler of it as the eCedi is necessary for the conversion from the Singaporean stablecoin (XSGD) through the purpose-bound money (PBM) facility on the DESFT platform within the cross-border payment transactions. This proves that the eCedi is not only useful in domestic payments. Additionally, the technology solution is scalable and utilizable by any countries in Africa and even globally to empower MSMEs.
Commenting on the proof of concept, Dr. Wolfram Seidemann, CEO of G+D Currency Technology stated, “The CBDC pilot in Ghana showed that an eCedi will enhance the Ghanaian domestic payment system. In addition, we now also could prove the digital currency´s potential in the global token economy. This proof of concept demonstrated how combined multiple challenges of international trade could be solved: programmable payments, foreign currency exchange and interoperability with cross-border payment and credentials platforms. This is a great example of how CBDC can drive economic growth, especially in the SME sector.”