The Depository financial institution of Ghana (BoG) is making some other pace towards the development of a central bank digital currency (CBDC) by partnering with a German currency technology provider.

The BoG officially announced Wednesday that it signed an agreement with German banknote and securities printing company Giesecke+Devrient (Yard+D) to pilot a retail CBDC in Ghana, West Africa.

As office of the agreement, M+D will provide its proprietary CBDC solution known equally Filia to pilot the issuance of a digital form of Ghana's national currency, the cedi. The digital currency volition be tested in a trial with local banks, merchants, payment service providers and consumers, as well as other related parties.

The project is part of Ghana'south digitization strategy, the "Digital Republic of ghana Agenda," aimed at digitizing data and government services for the country of xxx one thousand thousand people. Besides known as e-cedi, the digital cedi aims to complement the state's traditional national currency as a digital alternative. According to the announcement, the CBDC should facilitate payments without a banking company business relationship, contract or smartphone.

BoG governor Ernest Addison said that the east-cedi provides a great opportunity to create a "robust, inclusive, competitive and sustainable fiscal sector, led by the key banking concern." "From all indications, the concept has a significant office to play in the hereafter of financial service delivery globally. This project is a significant pace towards positioning Republic of ghana to accept full advantage of this emerging concept," he added.

Ghanaian Vice President Mahamudu Bawumia recently said that the African governments need to embrace digital currencies to facilitate trade throughout the continent. The official argued in late July that trade between African countries demands a "unmarried central payment" system.

Related: Ghana gearing for cardinal bank digital currency pilot

Originally specializing in high-quality currency and securities printing, One thousand+D has become deeply focused on digital payments and CBDC engineering in recent years. As of August terminal year, G+D was already negotiating using its Filia applied science with vi global central banks similar the Bank of Thailand to create CBDCs.

Apart from working on CBDC technology, Grand+D has been as well actively investing in the blockchain and cryptocurrency industry, terminal year leading a $17 one thousand thousand Series A funding round for Metaco, a Swiss startup providing custody services for cryptocurrencies and stablecoins.