Ghana is taking decisive steps to bring cryptocurrency under official oversight, with plans to license and regulate digital asset platforms in a move that could reshape the country’s financial landscape.
The Bank of Ghana is finalising a regulatory framework expected to reach parliament by September, according to Governor Johnson Asiama. This development comes as millions of Ghanaians have already embraced cryptocurrencies for daily transactions and cross-border trade, despite operating in a legal gray area until now.
The push for regulation reflects both the growing influence of digital currencies in Ghana’s economy and the challenges they pose to traditional financial systems.
With an estimated 3 million Ghanaians (about 17% of the adult population) using virtual currencies, authorities are keen to bring these transactions into the formal financial sector. Recent data shows Ghana recorded USD 3 B in cryptocurrency transactions between July 2023 and June 2024, per Web3 Africa Group, though this pales in comparison to neighboring Nigeria’s USD 59 B volume during the same period.
Governor Asiama acknowledged the urgency of regulation, stating “We are actually late in the game.” Many economic activities involving cryptocurrency payments currently escape official records due to the lack of oversight, creating blind spots for monetary policymakers.
This gap has become particularly problematic given the Ghanaian cedi’s dramatic fluctuations – the currency gained 48% over the past year following a 25% drop in the previous 12 months. Such volatility complicates inflation management in a country heavily dependent on imports.
The proposed framework aims to strike a balance between harnessing cryptocurrency’s potential benefits and mitigating its risks. Officials hope regulation will help stabilise the local currency, attract strategic investment, and improve financial transparency while protecting consumers from fraud. Kwame Oppong, head of fintech and innovation at the central bank, emphasised the need for safeguards, noting “Our goal for this whole process is to put safe guards and rails around it.”
With inflation at 13.7% and policy interest rates at 28%, the stakes for getting this balance right couldn’t be higher for Ghana’s economic future. As Ghana joins a growing list of African nations establishing cryptocurrency regulations, the coming months will reveal how effectively the new framework can reconcile innovation with financial stability in one of West Africa’s most dynamic economies.
