Ghana Explores Gold and Cocoa-Backed Digital Cedi for Currency Stability
Professor Yegandi Imhotep Paul Alagidede, the Bank of Ghana’s Chair in Finance and Economics at the University of Ghana, has proposed anchoring a future digital cedi to Ghana’s gold and cocoa reserves. This innovative approach aims to stabilize the local currency and lessen the country’s dependence on foreign monetary systems. The proposal, made during the launch of the Bank of Ghana Chair in Finance and Economics, suggests a significant shift in Ghana’s monetary policy.
Resource-Backed Cedi: A Path to Stability
Professor Alagidede’s vision centers on backing the digital cedi with tangible assets, specifically Ghana’s gold and cocoa reserves. He believes that a resource-backed digital currency offers a more stable foundation for monetary policy compared to the current fiat system. According to Professor Alagidede, pegging the cedi to assets controlled domestically could “restore value to what truly builds wealth” within Ghana and across Africa. Although the central bank hasn’t announced a specific implementation timeline, the professor suggested a phased rollout, beginning with reserves already held within the country. This strategy emphasizes a gradual transition toward a currency model deeply rooted in Ghana’s rich natural resources.
Keywords
Related Keywords: Digital cedi, Ghana, goldbacked cedi, cocoabacked cedi, Professor Alagidede, digital currency, central bank digital currency, CBDC, cedi reserves, economic policy
