Adoption of Central Bank Digital Currency in the Era of Mobile Money in Ghana

Abstract

The global push towards central bank digital currencies (CBDCs) presents a unique challenge in developing economies with established mobile money (MoMo) ecosystems. This study investigates the determinants of CBDC adoption in this context, focusing on Ghana’s eCedi. Data was collected from 1,001 respondents across three eCedi regions in Ghana, complemented by 16 in-depth interviews. The probit analysis show that higher educational attainment, mobile phone ownership, and awareness of the eCedi significantly increase adoption likelihood, with notable gendered variations. Crucially, the decision to adopt is contingent on the eCedi offering superior utility—such as lower transaction costs and enhanced security—compared to incumbent MoMo services. Conversely, concerns over potential fraud and high fees are identified as significant barriers to adoption. This study provides critical insights for policymakers, demonstrating that the success of a CBDC in a MoMo-saturated market depends not on replication, but on offering a demonstrably better value proposition to users.