Bank of Ghana on digital currency; Crypto ownership for 2021
The use of cryptocurrency is continuously increasing to the point where it is now accepted in several countries including Ghana. If you’re not familiar with cryptocurrency, it is a digital currency used to buy goods and services online. It is also decentralized which means that the government or any authority has no control over your transactions. Funds are directly sent to the receiver resulting in cheaper and faster transactions. Make sure to provide the correct amount because crypto transactions are irreversible.
Unlike traditional currencies, all of the crypto transactions are recorded on a public distributed ledger called blockchain. It is composed of several computers linked to a peer-to-peer network. Even though it is open to the public, it is almost impossible for anyone to alter any information. If someone tries to do so, in-depth knowledge about the blockchain and equipment is needed.
Aside from Bitcoin, the most valuable and popular coin in the crypto market, there are more than 6,000 coins that are in circulation right now. You can even read some Dogecoin, Ethereum and Tron blog posts to know more about the industry.
Use of crypto in Ghana
There are more than 900 thousand crypto users in Ghana. To some, this number is surprising because more than 80 per cent of landowners lack official title deeds with the Land Commission of Ghana. Most of the lands are held through oral agreements only. It just shows that the majority prefer using crypto because there are no legalities needed unlike when owning a land.
Since there are a lot of crypto users in the country, Bitland is developed using blockchain technology to mirror official title deeds. Bitland is a non-profit company that helps Ghanaians to attain property rights and to secure a more financially stable future. The main goal of the company is to provide land registry services to the poor or where there is no land registry and title services available to locals.
Bitland usually operates in three key phases: preparation of titles and registry, land survey, and land tokenization to make sure that the land is fit to be owned. The company also believes that once the owners have registered their land on the blockchain, they can finally apply for mortgages and loans.
New digital currency
Ernest Addison, the governor of Ghana’s central bank confirmed that the institution is now in the advanced stages of introducing a new coin. But before it is released in the crypto market, it will undergo three phases.
‘The Bank of Ghana was one of the first African Central Banks to declare that we were working on a digital currency looking at the concept of an e-cedi. After the implementation phase, we have a pilot phase where a few people would be able to use the digital cedi on the mobile applications and other applications that are currently running’, Addison revealed.
The governor also cleared that three stages will help the central bank to determine how feasible the project is. Addison also took the opportunity to compare the new coin to unregulated coins like Dogecoin.
‘I think there is a lot more emphasis on looking at digital money which is backed by the state, backed by the central banks. These private forms of money really are not able to perform the functions of money effectively’, the governor added. With this, Ghana became one of the countries on the African continent to adopt the use of cryptocurrency.
Even if it is among the trends in the market, you should only invest in crypto once you already know how the blockchain and crypto markets work. Keep in mind that the coins are highly volatile. This simply means that their price might change at any minute or even seconds.
It is highly recommended to read Dogecoin, Ethereum and Tron blog posts for you to have an idea that each coin has its qualities. Join the market only when you are ready.