The Bank of Ghana (BoG) has successfully completed a proof-of-concept (PoC) focused on the use of digital credentials for international trade and CBDC-based cross-border payments.
This initiative is part of Project Desft (Digital Economy Semi-Fungible Token), a collaboration between the BoG and the Monetary Authority of Singapore aimed at enhancing the participation of micro, small, and medium enterprises (MSMEs) from developing countries in global trade.
Maxwell Opoku-Afari, the first deputy governor of the Bank of Ghana, stated, “Project Desft is aimed at supporting SMEs in Africa to engage in international trade by removing significant obstacles they face, such as establishing trust with overseas trade partners and obtaining support in cross-border payments and supply chain finance.”
The project has concentrated on cross-border trade between Ghana and Singapore, utilizing the UN-developed, blockchain-based Universal Trusted Credential, the Singaporean Dollar stablecoin, the Ghanaian CBDC (eCedi), and purpose-bound money.
Giesecke+Devrient provided its Filia platform for the CBDC component, while local commercial lender Fidelity Bank supported banking and exchange services for the eCedi.
G+D highlighted that the PoC showcased a direct transfer between the transacting parties, thereby eliminating the lengthy chain of intermediaries and the associated high costs often seen in cross-border payments.
Wolfram Seidemann, CEO of G+D Currency Technology, remarked, “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.”