The Ghanaian central bank recently collaborated with the Monetary Authority of Singapore (MAS) to demonstrate the use of digital credentials in international trade. The second phase of Project DESFT culminated in the execution of cross-border trade between the West African nation and Singapore in April 2024.
Ghana Central Bank Partners With Singapore Regulator to Demonstrate Use of Digital Credentials in Global Trade
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Ghana’s CBDC to Streamline Cross-Border Trade
The Bank of Ghana announced on June 12 that it had completed its first proof of concept (POC), which demonstrated the use of digital credentials for international trade and cross-border payments. The POC, carried out using the Digital Economy Semi-Fungible Token (DESFT), was conducted in collaboration with the Monetary Authority of Singapore (MAS).
According to a statement, the initial phase of the project addressed the design and development of a trusted credential system aimed at assisting Ghana’s small and medium-sized enterprises in international trade. The second phase of Project DESFT culminated in the successful execution of cross-border trade between the West African nation and Singapore in April 2024.
The statement added that the trade demonstrated the utility of the Bank of Ghana’s (BOG) proposed central bank digital currency ( CBDC) in cross-border transactions. The BOG also claimed that the introduction of the CBDC, known as the e-cedi, will enhance Ghana’s dynamic payment ecosystem and simultaneously improve consumer experiences.
BOG Crafts Reliable Information Exchange Solution
Maxwell Opoku-Afari, the first Deputy Governor of the BOG, remarked on the milestone achieved by his organization. He commended Project DESFT, which he said highlights the apex bank’s support for small and medium-sized enterprises (SMEs) in Africa.
“We believe that the new generation of financial technology offers innovative approaches to these challenges. After nearly a year and two phases of development, we have crafted a reliable information exchange solution founded on UTC standards and Semi-fungible Token technology,” Opoku-Afari said.
Meanwhile, the Ghanaian central bank said Project DESFT is expected to build on current milestones. The project will also focus on “highly automated digital credential processes, programmable payments across multiple digital currencies, and support for supply chain
finance,” the statement added.
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