You are here: HomeBusiness2021 08 31Article 1345543

Business News of Tuesday, 31 August 2021


All Central Banks around the globe are exploring digital currencies – BoG Governor

Governor of the Bank of Ghana, Dr. Ernest Addison Governor of the Bank of Ghana, Dr. Ernest Addison

Governor of the Bank of Ghana (BoG), Dr. Ernest Addison has said that one major initiative introduced by the central bank is the Online Regulatory Analytics Surveillance Systems (ORASS).

He said this was introduced to help streamline data collection, maintain dynamic corporate profiles on regulated financial institutions, and move licensing and related authorisation onto an electronic platform without the need to physically visit the premises, thereby easing the supervisory and regulatory burden on financial institutions.

An important requirement for successful integration with ORASS, especially in the submitting of prudential returns, is the requirement to use an application programming interface (API) to perform machine-to-machine data transfer.

To this end, reporting institutions must reconfigure their banking software and databases to capture new data points and implement API processes for direct data transfer from banking software to the ORASS.

Speaking at the 40th-anniversary celebration of Akuapem Rural bank limited, Dr. Addison said “The main goal of introducing the API is to reduce, as far as possible, human interference in data processing and transfer, which is best done by automated computer processes.

“The ARB Apex Bank is implementing the API submission of returns for rural and community banks operating on the T24 platform and a Technical Team from the Bank of Ghana continues to provide the needed support to facilitate this process.

“Mr. Chairman, let me use this opportunity to reiterate the Bank’s commitment to innovation and technology. In May 2020, the Bank established the Fintech and Innovation Office to drive the cash-lite, e-payments, and digitisation agenda with the mandate to develop policies to promote Fintech, Innovation, and Interoperability in the country.

“Subsequently, the Bank, in February 2021, launched a regulatory and innovation sandbox pilot to provide a framework for stakeholders and other innovators to conduct live experiments in a controlled environment under the supervision of Bank of Ghana.

“Central banks around the globe are exploring the introduction of digital currencies and Ghana is among the leading African countries to enter the pilot phase.

“The E-Cedi, which is the first general-purpose Central Bank Digital Currency in Africa, will complement and serve as a digital alternative to physical cash, in line with the Government’s ‘Digital Ghana Agenda’. The E-Cedi will be tested in trial phases with banks, payment providers, merchants, consumers, and other stakeholders for a nationwide rollout as it will present an opportunity to build a robust, inclusive, competitive, and sustainable financial sector.

“We expect that all rural and community banks will collaborate with ARB Apex Bank to leverage the opportunities available with digitisation within the payment ecosystem.”