As more individuals continue to see the advantages of direct payments over cash, Luis Cambronero Pérez, Director of Partnerships and API Sales at AZA Finance, forecasts a significant year for the local cashlite agenda.
During the last ten years, digital payments have increased dramatically, and despite concerns over the introduction of the e-levy last year, the sector leader, mobile money, has exceeded the GH1 trillion mark, up from GH902 billion in 2021.
And Mr. Pérez thinks the central bank digital currency (CBDC) will expand the usage of digital payments as the Bank of Ghana (BoG) aims to mimic the growth of mobile money.
The expense and hassle of managing cash, which may be a substantial burden for small enterprises and individuals, can be reduced with the aid of digital payments, he added.
"We anticipate 2023 to be a significant year for Ghana's cashlite program. The e-CEDI and other digital payment tools are revolutionizing how people conduct business, and we think this trend will further gain momentum given the advantages of direct payments over cash, including improved security, transparency, and efficiency, said Mr. Pérez.
The BoG stated that it had tested its offline CBDC in Sefwi Asafo and other villages last year, adding that it had gotten positive feedback.
It was predicted that by the end of 2022, 110 countries—representing around 95% of the global gross domestic product (GDP)—would have created or be considering establishing a CBDC.
AZA Finance's Head of Partnerships and API Sales praised the Bank of Ghana, which just received the RegTech of the Year award at the Ghana FinTech Awards 2022, for its proactiveness while anticipating regulation to be a crucial component in the push towards digital transformation.
It is reasonable to conclude that, regardless of how much innovation occurs over the coming years, legislation will decide the rate of acceptance, and in the quick-moving world of technology, it might be make or break.
Because of this, we nonetheless applaud the Bank of Ghana for being proactive while upholding its monitoring responsibilities, he emphasised.
Moreover, Mr. Pérez endorsed previous predictions that investment for startups on the continent will expand in the foreseeable future, asserting that the continent's youthful population should help it succeed in the digital sector.
"Many of these cutting-edge tools are developed and used by young people, and the tide is shifting in Africa's favor. He said that Ghana, which is one of the top five destinations for fintech financing, is set to gain tremendously from the energy and potential of its young people.
At the moment, more than 60 percent of Africans are under the age of 25.
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