Please describe your proposed solution.

OVERVIEW OF THE CDBC RISK – GLOBAL PERSPECTIVE

The Central Bank Digital Currency (CBDC) is seen as an alternative to the ever-rising adoption of cryptocurrencies across jurisdictions. The global crackdown against Cryptocurrencies is due to the fact that governments all over the world have not found out how to control them. In response, the Central Bank Digital Currency has been rolled out and most countries have undertaken research in this dystopian currency and are about to launch in more countries.

CBDC is considered to be both an evolving new form of central bank money (alongside cash and

central bank’s reserves) and an innovative payment instrument with its own infrastructure. What makes CBDCs unique is that it is not just any digital currency because CBDCs have the ability to control and limit individuals’ financial freedom.

In Canada, it is shocking to witness how the government froze millions in convoy funds. The general freedom we have to digital currency is the ability to choose. For instance, if your bank puts restrictions on your transaction, you can deal with another bank. If you find Ethereum gas fees expensive, you can choose Cardano. However, with CDBCs, you don’t have the freedom to choose or opt-out. This is because your money will be stored with the Central Bank and there is only one Central Bank in every country. The centralization of CBDCs gives the government and central bank the ability to decide what you will do to your money thus ending financial freedom.

The General Manager for Banks for International Settlement, Agustin Carsten, outlined a key feature of CBDC as ‘‘a key difference with the CBDC is that Central Bank will have absolute control on the rules and regulations that will determine the use of the expression of Central bank liability and also, we will have the technology to enforce that’. In simple terms, Central banks control your transactions. Therefore, people cannot opt-out to use cash, because CBDC is here to replace cash, Nigerian’s E-Naira is a case for reference.

Also, the President of the European Central Bank, Christine Lagarde, admitted that CBDC would be used for control in a video chat with fake Zelensky. (See: <https://cointelegraph.com/news/cbdc-will-be-used-for-control-ecb-president-admits-in-vid-chat-with-fake-zelensky>). The Brazilian Central Bank after sharing the code for its CBDC (D-Rex) revealed that it contained codes to freeze transaction. (See: https://cointelegraph.com/news/brazil-cbdc-pilot-source-code-can-freeze-funds).

In all these backlashes with the risk associated with CBDCs, others have taken drastic step to ban the Central Bank from having such power in the issuance of CBDCs. It is worth mentioning that North Carolina passed a law to ban the use of CBDCs which was followed by the Governor of Florida, Ron DeSantis, signing a bill into law that sought to restrict the use of use of CBDCs. (See: <https://cointelegraph.com/news/north-carolina-house-passes-bill-banning-cbdc-payments-to-the-state>,<https://www.flgov.com/2023/05/12/governor-ron-desantis-signs-first-in-the-nation-legislation-to-protect-against-government-surveillance-of-personal-finances/>). House Republicans is moving a step closer to passing the ‘CDBC Anti-Surveillance State Act’ aimed at preventing the Federal Reserve from issuing CBDCs. (See: <https://cointelegraph.com/news/us-anti-cbdc-bill-moves-closer-to-passing>)

CDBCS IN AFRICA – THE NIGERIAN E-NAIRA

In Africa, Nigeria is the first African country to launch its CBDC on 25th October 2021 called the E-Naira. After launching, adoption of it was slow and not as anticipated. According to Bank for International Settlement, voluntary adoption of CBDCs by citizens is between 4-12%. However, this figure is low compared to the 0.5% adoption rate in Nigeria after a year of launching its CBDC (E-Naira). The government of Nigeria had to employ stringent measures including cash restriction and putting a cap on the maximum amount one can withdraw from ATM just to increase adoption. The youth of Nigeria took to the streets to protest against the E-Naira amid cash shortage. (See: <https://aidblock.org/2023/03/14/what-has-been-the-impact-of-e-naira-on-nigerians-economy/> , <https://www.coindesk.com/policy/2023/03/22/nigerias-enaira-wallet-use-transactions-climb-amid-cash-shortages-bloomberg/> , <https://www.bloomberg.com/news/articles/2023-03-21/nigeria-digital-currency-transactions-jump-63-on-cash-shortages#xj4y7vzkg>)

SOLUTION IN FOCUS: POLICY INITIATIVE – AWARENESS

Despite the risk associated with CBDCs and the desire to use the centralized digital currency to control and limit financial freedom, the Central Bank of Ghana is working actively to launch its CBDC called E-Cedi. What is interesting is that despite everything happening with CBDC around us, the awareness of the Ghanaian population is low.

This proposal seeks to undertake a policy initiative that would focus on creating risk awareness of CBDCs in Ghana. The project would undertake policy dialogue to have stakeholder buy-in and also undertake mainstream media interviews and education that would promote consciousness in safeguarding financial freedom and crypto space in Ghana.

The Bank of Ghana Policy Paper on E-Cedi (Ghana’s CBDC) titled ‘Design paper of the digital Cedi (eCedi)’, has stated as part of its motivation for rolling out eCedi to include;

(Our focus here is to present motives for ensuring control and curtailing financial freedom in the policy document of the Bank of Ghana [BoG])

• Enhance consumer adoption of digital payments. ‘The eCedi is piloted as part of the broad Digital Financial Services Policy which prioritizes the digitization of payment use cases such as; small-value informal pensions, government payments, remittances, merchant payments, and utility payments’.
• Anticipation of the role of BoG as a progressive regulator for facilitating the development of the digital economy. ‘The establishment of the FinTech and Innovation Office by BoG is seen as the first step towards realization of the Bank’s goal of regulating the vast digital service terrain in Ghana’s financial sector. An inclusive and innovative project on digital currency implementation will foster BoG to adopt digitization as a key policy objective to drive growth in all aspects of the country’s economy’. This means that every digital innovation involving payment would require license from Fintech and Innovation Office created by the Bank of Ghana.
• Foster the possibility of a more secure, efficient, and resilient payment system. ‘International approaches to financial markets regulation4 prove that governments have to play a key role in mission-critical services that cannot entirely be left to the private market’… ‘The implementation of the eCedi can reduce the share of cash payments in circulation, increase the speed and convenience of cashless payments, engender competition in payment services, and enhance settlements of digital interbank and cross-platform retail payments and improve efficient use of liquidity in the Ghanaian payment ecosystem’. Clearly, the motive is to replace cash with eCedi (CBDC) in Ghana.
• Address the risk of unregulated privately issued digital “currencies” or virtual assets. ‘The scrutiny of Big Tech companies in regard to providing payment services and issuing private digital currencies is a significant challenge for regulators nowadays. Such global private “currencies”, as well as locally issued cryptocurrencies, provoke a wide range of risks including monetary, legal, operational, consumer protection, and financial stability. Digital currency issued and guaranteed by the central bank would meet the demand for digital currencies without posing systemic risks’. The motive is very clear to scrutinize private digital currency including crypto in Ghana.

The quotations above are the direct motivation behind the Central Bank of Ghana’s CBDC (eCedi) and its boldly stated in its policy paper.

Our policy initiative focuses on awareness that would sensitize the Ghanaian population to build consciousness and awareness of financial freedom and how eCedi would curtail this freedom. To have a credible voice for this policy initiative, the project would be directly under the Center of Technology and Digital Economy at YAFO Institute and the African Institute for Defi and Blockchain (AIDBLOCK). In the past, our efforts have pushed for the reduction of electronic transaction levy (E-Levy) from 1.7% to 1% in Ghana. (See: https://www.africanews.com/2022/11/24/ghana-reduces-e-levy-rate-to-1-2023-budget/). This is one of the major policy successes achieved in Ghana for crypto traders to have tax relief. Hence, the experienced team of the two think tanks would be helpful in achieving success going head-on against CBDCs in Ghana.

The awareness would focus on the following;

1. High Profile Policy Dialogue Event

2. Mainstream media Education

3. Mainstream media and Popular Political Talk Show Interviews

4. Op-Ed and Articles on CBDCs

POLICY CLIMATE FOR CHANGE

Ghana is heading into Election 2024, therefore, this a favorable and opportune time to create awareness and mobilize support against CBDD policies that would threaten the existence of crypto in Ghana.

In conclusion, this policy initiative is one that would push for local policy and regulation formulation in Ghana. CBDCs come with the risk of controlling individual financial freedom and controlling their decision process with their earned capital in Ghana. Together, let’s safeguard the Cardano Community in Ghana and crypto at large.

Please define the positive impact your project will have on the wider Cardano community.

Our Policy Initiative would help create awareness on the risk of CBDCs to its ultimate rejection by the Ghanaian populace. Here for the main positive impact of our project for Cardano Community;

1. Increased awareness of the potential risks of CDBC. CDBCs, or central bank digital currencies, are a new type of digital currency being studied by central banks worldwide. While CDBC has the potential to provide certain benefits, such as enhanced financial inclusion and efficiency, it also has the potential to bring some concerns, such as more government surveillance and control. The Hold Policy Initiative would help to raise awareness of these dangers and foster informed debate regarding the future of CDBC in Ghana.
2. Citizens are empowered to make educated financial decisions. Citizens will be better positioned to make educated judgments about whether or not to use CDBC if they have more information about it. The project would assist citizens in gaining control of their finances and making decisions that are in their best interests.
3. Protection of financial independence, CardanoADA, and cryptocurrency in general. CDBC has the ability to centralize financial system control and destroy financial freedom. Our project would help to defend financial freedom, CardanoADA, and crypto in general by increasing awareness of the problems of CDBC and supporting the creation of alternative and private forms of digital money (crypto) that are more decentralized and resistant to control.

Overall, the project would contribute to strengthening Cardano's position in Ghana as a leader crypto with growing community.

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Capacity

The capacity of our team has been phenomenal within the Ghanaian policy space. The teams great experience in research, advocacy, education and policy marketing and communication. This has helped the team chalked policy wins including transformation of Ghana's vehicle insurance space to make it responsive to market and advocating for the reduction of electronic transaction levy in Ghana. Our team has great media reach and communication experience to drive change in Ghana.

Accountability

Our team maintain transparency and accountability with the catalyst community. We are committed to reporting and publication of work on our websites for easy access as well as maintain openness with progress through community reporting and media mentioning.

Feasibility

The credibility of our advocacy voice to create awareness for this project is critical for success. Therefore, undertaking the project under the auspices of the Center for Technology and Digital Economy, YAFO Institute and African Institute for DeFi and Blockchain (AIDBLOCK) leverages on the great track record within the Ghanaian policy space. We successfully undertook Policy Dialogue on Fintech and Blockchain Technology for Free Trade in Ghana. This brought prominent mainstream media awareness on how blockchain can be utilize to enhance free trade. Therefore, our proven expertise in influencing policies in Ghana would be leverage for the successful delivery of this project to safeguard the crypto space in Ghana.

Timeline for the Project

Month 1

• Organize a high-profile policy dialogue on CDBC to engage policymakers, government officials, and financial experts in a discussion about CDBC's potential risks and benefits.

• Identify and contact journalists from major Ghanaian news outlets to secure media interviews to discuss the negative aspects of CDBC.

Month 2

• Facilitate presentations and discussions on the potential risks of CDBC, such as increased government surveillance and control, at the organized policy dialogue.

• Prepare press releases and talking points for media interviews that effectively communicate the key messages of the Hold Policy Initiative.

Month 3

• During the policy dialogue and media interviews, highlight alternative forms of digital currency that are more decentralized and resistant to control.

• Write op-eds and articles that clearly explain the potential risks of CDBC as well as the advantages of other forms of digital currency.

Month 4

• Submit op-eds and articles to targeted Ghanaian publications in order to educate the public about the potential risks of CDBC and promote alternative solutions.

• On CDBC, create infographics, explainer videos, and other educational materials.

Month 5

• Distribute educational materials through online platforms, social media, and community events to provide the public with simple information about CDBC and empower them to make informed financial decisions.

• Form relationships with journalists and media outlets that cover CDBC developments.

Month 6

• Organize workshops and seminars to educate the public about CDBC and its potential consequences.

• Provide timely and insightful commentary on CDBC-related news and developments in order to establish the Hold Policy Initiative as a reliable source of information on CDBC and its implications for Ghana.

• Take part in media interviews and panel discussions to share your knowledge of CDBC.

What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Hold a high-level policy dialogue on CDBC.

• Objective

Hold a discussion with policymakers, government officials, and financial professionals regarding the potential dangers and benefits of CDBC.

Output

• Organize a panel discussion or roundtable discussion with important speakers from academia, industry, and government.

• Facilitate presentations and debates on the potential concerns of CDBC, such as increased government surveillance and control.

• Emphasize alternate types of digital currency that are more decentralized and resistant to centralization, example Cardano ADA.

>Milestone 2: Obtain media interviews to address the negative aspects of CDBC

• Objective

Reach a larger audience and raise public awareness of the potential dangers of CDBC.

• Output

• Identify and contact journalists from Ghana's major news outlets.

• Create press releases and talking points that effectively communicate messages on risk of CBDCs

• Participate in media interviews to address the potential risks of CDBC and the value of financial independence.

>Milestone 3: Have op-eds and articles published in prominent Ghanaian publications.

• Objective

Inform the public about the potential dangers of CDBC and promote alternative solutions.

• Output

• Locate trustworthy Ghanaian newspapers, magazines, and online publications.

• Write op-eds and articles that clearly explain the potential risks of CDBC as well as the advantages of other forms of digital currency example Cardano ADA.

• Submit op-eds and articles to targeted mainstream media for publication.

>Milestone 4: Create CDBC media education materials.

• Objective

To provide the public with simple information about CDBC and to empower them to make informed financial decisions and contribute to public debates.

• Output

• On CDBC, create infographics, explainer videos, and other educational materials.

• Make educational materials available via online platforms, social media, and community events.

• Hold workshops and seminars to educate the public about CDBC and its potential consequences.

>Final 5: Provide expert commentary on CDBC developments to the media.

• Objective

Establish the Hold Policy Initiative as a reliable source of information on CDBC and its implications for Ghana.

• Output

• Provide timely and insightful analysis of CDBC-related news and developments.

• Take part in media interviews and panel discussions to share your knowledge of CDBC.

Who is in the project team and what are their roles?

• Elishia Sedo - Project Manager

He has Bsc in Business Administration option in Finance. He is the regional business developer and specialize in utilizing digital platform for product distribution. He undertake research and develop advocacy project project with focus on improving business and financial regulations in Ghana.

LinkedIn: https://www.linkedin.com/in/elisha-sedo-324a75172/

• Nathaniel Dwamena - Educator & Policy Communication

A researcher with years of experience in think tank development and non-profit management. He was part of the team contracted by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ Ghana) to conduct a study on red tapes for doing business in Ghana. He has a background in project management, think thank Management, and is a graduate of Atlas Leadership Academy, USA. He has founded several non-profit organizations including Young Africans for Opportunities and Africa Human Right Forum. He successfully completed think tank training in Nigeria and project management training in Kenya which aided in his successful graduation from the Atlas Leadership Academy, Atlas Network (USA). He has written several Op-Eds that have contributed to public policy debate and engaged with credible media houses in Ghana. He is also a member of WADA Ghana and Konma and a speaker at blockchain events in Ghana. He is also an active catalyst member, fund 7 community advisor, and co-proposal.

LinkedIn Profile - <https://www.linkedin.com/in/nathaniel-dwamena-02578a127/>

• Adwoa Asubonteng Esq. - Legal Advisor

He is an Advocate of the Supreme Court of Ghana. She has an interest in the intersection between the law and Intellectual Property (IT) especially as regards the internet, privacy, and the law, Blockchain, Corporate Governance and Artificial Intelligence. She served as Speaker of Parliament during her time at the Law Faculty at Kwame Nkrumah University of Science and Technology. She is an eloquent public speaker and focus her career in bring about positive change. She is currently the Head of Legal Affairs at YAFO Institute.

LinkedIn: https://www.linkedin.com/in/adwoa-osafredu-asubonteng-335b60140/

Please provide a cost breakdown of the proposed work and resources.

Budget for the Project

Organizing a high-profile policy dialogue on CDBC – 21,000 ADA

• • Venue rental: 5,000 ADA
• • Event Logistics: 1,500 ADA
• • Resource & Material: 3,000 ADA
• • MarCom Plan – 5,000 ADA
• • Transportation: 2,000 ADA
• • Media Mentioning: 4,500 ADA

Securing media interviews to discuss the dark-side of CDBC – 5,000 ADA

• • Media relations consultant fees: 4,000 ADA
• • Travel and accommodation for media interviews: 1,000 ADA

Publishing op-eds and articles in prominent Ghanaian publications – 11,000 ADA

• • Writing fees: 8,000 ADA
• • Editorial services: 3,000 ADA

Developing media education materials on CDBC – 16,000 ADA

• • Graphic design fees: 3,000 ADA
• • Educational Research: 8,000 ADA
• • Video production fees: 5,000 ADA

Engaging with the Public & media to provide expert commentary on CDBC developments – 15,000 ADA

• • Public Lecture and workshop attendance fees: 10,000 ADA
• • Media interview and panel discussion participation: 5,000 ADA

Miscellaneous – 2,000 ADA

__________________________

Grand Total – 70,000 ADA

How does the cost of the project represent value for money for the Cardano ecosystem?

The Cardano Ecosystem gains significant value from the Policy Initiative with a focus on awreness by promoting CardanoADA as a secure and decentralized alternative to CDBC, protecting financial freedom and individual autonomy, educating the public about digital currency, and fostering collaboration between the Cardano community and local policy initiatives to safeguard our space. The project provides value for money in the following areas;

Promoting CardanoADA as a secure and decentralized alternative to CDBC: The Policy Initiative would encourage individuals and businesses to consider CardanoADA as a more secure and decentralized alternative for their financial transactions by raising awareness of the potential risks of CDBC. This would result in increased CardanoADA adoption, which would benefit the Cardano Ecosystem by increasing demand for ADA tokens and strengthening its position in the crypto space.

Protecting financial freedom and individual autonomy: CDBC has the potential to centralize financial system control and erode financial freedom. By raising awareness of the risks of CDBC and advocating for alternative forms of digital currency that are more decentralized and resistant to control, the Policy Initiative would help to protect financial freedom and individual autonomy. This is consistent with Cardano's fundamental principles of decentralization and empowering the marginalized as well as support for local policy and regulatory framework that champion growth and innovations.

Educating the general public about digital currency and empowering informed decision-making: The Policy Initiative would assist in educating the general public about digital currency and empowering them to make informed financial decisions. This includes informing people about the potential risks and benefits of CDBC, as well as alternative forms of digital currency such as CardanoADA. The initiative would help to reduce the risk of scams and fraud in the cryptocurrency space by increasing financial literacy.