The Central Bank of Ghana has announced its intention to implement licensing for cryptocurrency companies and create a legislative framework for regulating digital assets by September 2025. This decision is driven by the growing popularity of cryptocurrencies among the country’s population amid the volatility of the national currency.
This is reported by Finway
Reasons for Implementing Cryptocurrency Market Regulation
Central Bank Governor Johnson Asama noted that an increasing number of citizens and businesses in Ghana are conducting financial transactions in cryptocurrencies, which are currently not recorded in government statistics. The lack of regulatory oversight creates risks for the financial system and the national currency.
“We are indeed late to this game,” Asama acknowledged.
The government plans for the new law to help the state generate tax revenues from crypto activities, attract investments, expand inter-state trade in Africa, and strengthen control over monetary policy, especially considering the significant volatility of the Ghanaian cedi. Over the past year, the cedi has appreciated by 48% after a 25% decline the previous year, complicating the fight against inflation, which reached 13.7% in June, while the key interest rate stands at 28%.
Significance for the Market and Prospects for Cryptocurrencies in Ghana
As noted by Del Titus Bawua, CEO of Web3 Africa Group, African governments can benefit from integrating cryptocurrencies into their financial systems. According to him, about 3 million residents of Ghana, representing 17% of the adult population, are already using virtual currencies.
“It is advantageous for African governments to integrate cryptocurrencies into the financial system for better oversight.”
From July 2023 to June 2024, the volume of cryptocurrency trading in Ghana reached $3 billion, while in Nigeria it was $59 billion. Together, this accounts for nearly half of the volume of crypto transactions in countries in Sub-Saharan Africa, which totals $125 billion.
Analysts note that the region has some of the highest remittance costs in the world, so the introduction of digital currencies could significantly reduce expenses and enhance financial accessibility. As highlighted by Craig Stoyr, chief legal officer of the Yellow Card platform, cryptocurrencies can help address the issue of dollar liquidity shortages that hinder the development of intra-African trade.