Cryptocurrencies remain illegal within the financial system, going by a statement from the Minister of State at the Finance Ministry.
Speaking on the floor of Parliament, Dr. Amin Adam reportedly said that government is yet to develop a comprehensive framework for cypto transactions in the country, and until then, banks are prohibited from handling cryptocurrencies.
“The government will continue to allow associated technologies, such as blockchain and distributed innovations in a sandbox, as we explore the development of a framework. Until such a framework is in place, the government would like to reiterate its directive conveyed in several notices, including one issued on March 9, 2022, that all institutions licensed by the Bank of Ghana are prohibited from facilitating cryptocurrency transactions through their platforms or agents’ outlets,” the Minister of State at the Finance Ministry cautioned while speaking in Parliament.
The report adds that the Central Bank of Ghana (BoG) cautioned banks and other financial entities from dealing in cryptocurrency in 2022.
In 2021 Bank of Ghana launched a regulatory and innovation sandbox pilot to test innovative products, services, and business models under the regulator’s supervision. The bank specifically mentioned that the sandbox will give preference to products and services leveraging blockchain technology and remittances among others.
Below is the complete outline of categories given preference in the sandbox pilot:
- Blockchain technology
- Remittance products
- Crowdfunding products and services
- e-KYC platforms
- RegTech (regulatory technology)
- SupTech (supervisory technology)
- Digital banking
- Products and services targeting women financial inclusion
- Innovative merchant payment solutions for MSMEs
In 2022, the apex bank again announced the launch of a regulatory and innovation sandbox, developed in collaboration with EMTECH Solutions, a software services firm that targets central banks.
The sandbox by EMTECH is intended to serve as an enabling framework for small-scale, live testing of innovations by innovators. The bank issued a call to innovators to apply to join the first cohort of this regulatory sandbox between February 13 – March 14 2023.
While it is not clear when a framework for cryptocurrencies will be unveiled, the bank has continued efforts to test a central bank digital currency dubbed eCedi.
