Bank of Ghana studying ways to regulate Cryptocurrency

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Dr. Ernest Addison, the Governor of the Bank of Ghana, has hinted that the institution is working on a regulatory framework for cryptocurrencies.

He stated that the public’s growing interest in digital and virtual assets, also known as cryptocurrencies, is the reason for this strategy.

This was made public by Dr. Addison at the Accra-based Chartered Institute of Bankers Ghana 2022 Annual Bankers’ Dinner Day.

“Given the recent trends, the BoG initiated processes to active­ly study and monitor cryptocur­rency and related technologies and models such as blockchain, decentralised finance and stable­coins. The bank has subsequently gained institutional understand­ing of the concepts, monitored global market developments, and reviewed several regulatory and global standards setting bodies across various jurisdictions, includ­ing the Financial Action Taskforce, Financial Stability Board, the Basel Committee on Banking Supervi­sion,” the Governor stated.

“In all these, the clearest take­away for the bank is the fact that, crypto currencies are digital assets and not currency, and in as much as cryptocurrency is associated with other key risks including volatility, cyber-theft, loss of funds with potential threat to financial stability, an outright ban of crypto­currency has proven ineffective, mainly due to its decentralised and borderless nature.

Consequently, the bank intends to continue to allow blockchain in the regulatory sandbox, as the first step while we continue to explore a comprehensive regulatory frame­work for the digital asset industry,” Dr Addison stated.

He mentioned that the Bank continues to stand by its public warnings about the dangers of cryptocurrency transactions.

However, the Governor did not give a timeline for the development of the framework.

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