Ghana’s Central Bank Set to Regulate Digital Assets
Ghana’s central bank is gearing up to oversee the digital asset space later this year, pending the passage of legislation currently before parliament, Governor Johnson Asiama has revealed. Speaking at the African Leaders and Partners Forum in Washington, Asiama expressed the Bank of Ghana’s commitment to promoting digital asset adoption through the enforcement of laws that protect consumers while fostering innovation.
Regulatory Framework
The central bank’s oversight authority hinges on the passing of the Virtual Asset Providers Act, which covers aspects such as consumer protection, preventing illicit use of digital assets, ensuring financial stability, cybersecurity, and the regulation of virtual asset service providers (VASPs) in conjunction with the Securities and Exchange Commission (SEC). VASPs will be required to obtain a license from the Bank of Ghana.
Once the legislation is enacted, the central bank plans to establish a dedicated digital asset unit to streamline regulatory efforts.
“This is a technology we cannot prevent, hence the need to move fast to regulate it,” Asiama emphasized.
Digital Asset Adoption in Ghana
Despite the absence of regulations, a significant portion of Ghana’s population, particularly the youth and tech-savvy individuals, have embraced digital assets. A recent report indicated that 3.1 million Ghanaians, accounting for 17% of the population, own digital assets. CoinGecko’s data further highlights Ghana as the fourth African country in terms of interest in digital assets, trailing behind Nigeria, South Africa, and Kenya.
eCedi and CBDC Launch
In addition to regulating digital assets, Ghana is making strides in developing its digital currency, the eCedi. BoG’s head of innovation, Kwame Oppong, disclosed earlier this year that the central bank aims to introduce the central bank digital currency (CBDC) pending the enactment of supporting legislation.
Asiama reaffirmed the bank’s dedication to the CBDC project during the Washington forum, emphasizing its potential to digitize the country’s payment systems and enhance financial inclusivity.
“Africa’s future must be digital—but inclusive. Ghana’s eCedi pilot reflects our ambition to build not only innovative payment systems, but public infrastructure that expands access and safeguards monetary sovereignty,” Asiama stated.
Digital Transformation for Youth Empowerment
Asiama believes that inclusive digital transformation is crucial for empowering Ghana’s youth, especially considering that 56% of the population is aged 25 and below. The young demographic has turned to digital asset trading as a response to economic challenges, including a depreciating cedi and record emigrations from the country.
Stablecoins pegged to the USD have emerged as a popular hedging option for Ghanaians amidst currency fluctuations. In March alone, the cedi depreciated by 5.3% against the USD and 9.2% against the euro, marking a 19% loss in value against the greenback since 2024.
Conclusion
Ghana’s proactive approach towards regulating digital assets and advancing its digital currency initiatives underscores the country’s commitment to embracing technological innovation while ensuring financial stability and inclusivity. As the digital landscape continues to evolve, Ghana is poised to leverage these developments to empower its citizens and strengthen its economy.
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