Ghana’s apex bank will begin to develop a framework for the regulation of digital assets which includes cryptocurrencies. Dr. Ernest Addison, the current governor of the bank, made the announcement at an event by the Chartered Institute of Bankers Ghana.
Information about the announcement shows that the government of Ghana made the decision in response to the popularity and usage of digital assets by Ghanaians. Last month, the first African Bitcoin Conference was also held in Ghana which attracted several global crypto figures like Jack Dorsey and Jack Mallers.
The governor explained that the development started when the bank initiated a study and observation of “cryptocurrency and related technologies and models such as blockchain, decentralized finance and stablecoins.”
In addition, he said that they had paid attention to global practices, regulatory frameworks, and standards related to digital assets from institutions such as the Financial Action Taskforce, Financial Stability Board, and the Basel Committee on Banking Supervision.
No need to ban cryptocurrencies
Africa has become a major part of the global crypto ecosystem. A report from Chainalysis shows that in mid-2021, the continent had crypto transactions reach the $20 billion mark. Nigeria, Morocco, and Kenya are among the top twenty countries in the Global Crypto Adoption Index released by Chainalysis.
Speaking about Ghana and crypto, Ray Youssef, CEO of Paxful, who has been serving the African market with crypto services, said that between 2020 and 2022, the trading volume of Ghanaians on the Paxful platform grew by 400%. It shows the huge potential of crypto in the nation.
The governor, during the announcement, noted that despite the volatility and risk attached to cryptocurrencies, an outright ban on the use of cryptocurrencies is not possible due to its decentralized and borderless nature. Hence, a need for regulations.
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