Adoption of Central Bank Digital Currency in the Era of Mobile Money in Ghana Edwin Osafoh, Michael Kodom

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 from 1,001 survey respondents and 16 in-depth interviews were analyzed using a probit model. The results indicate that tertiary education increased adoption likelihood by 25.6%, mobile phone ownership by 7.1%, and prior eCedi awareness by 6.6%, with notable gendered variations in these drivers. 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.