Latest news with #BankofGhana
Daily News Egypt
2 hours ago
- Business
- Daily News Egypt
Ghana Moves to Regulate Cryptocurrency Amid Soaring Adoption
Ghana is preparing to introduce a legal framework to license and regulate cryptocurrency trading platforms, including those dealing in Bitcoin, as digital asset use grows rapidly across the country. The Bank of Ghana announced that the proposed legislation—set for rollout by September 2025—aims to bring structure to a sector that now sees an estimated $3 billion in annual transactions. The framework will set clear requirements for licensing, consumer protection, fraud prevention, and secure storage of digital assets. The move reflects a broader trend across West and Central Africa, where several governments are grappling with how to integrate decentralized finance into formal financial systems without stifling innovation. Digital Finance in a Transforming Economy Ghana has become one of Africa's most dynamic fintech markets, with high mobile penetration and a tech-savvy youth population embracing digital financial tools to navigate economic pressures, including inflation and remittance costs. Analysts say regulating cryptocurrencies could help channel this growth into formal economic pathways, offering new opportunities in fintech employment, innovation, and foreign investment. The framework will also include anti-money laundering measures and public education campaigns to raise investor awareness. 'This marks a significant shift in how West African nations are rethinking their approach to financial inclusion and tech-driven development,' said Kojo Biney, a digital finance researcher based in Accra. Ghana's Position in a Changing Regional Landscape The upcoming regulation places Ghana alongside other African nations experimenting with regulatory approaches to crypto—such as Nigeria, Kenya, and South Africa—where both the risks and potential of digital currencies have drawn increasing attention from central banks and governments. By formalizing the sector, Ghana aims to not only reduce illegal financial activities but also build public trust and attract global blockchain players seeking a stable African base. A Balancing Act Ghana's central bank is looking to strike a balance between oversight and innovation, ensuring that crypto development supports national economic goals without exposing users to unregulated risk. If successful, the model could provide a regulatory template for other African economies facing similar challenges. The framework may also encourage greater integration of digital assets with traditional banking, potentially expanding access to credit, savings tools, and secure payment systems for underbanked communities. As the September deadline approaches, fintech stakeholders, regional policymakers, and global investors will be watching Ghana closely—viewing its regulatory ambitions as a key step in shaping Africa's digital finance future.
Reuters
4 hours ago
- Business
- Reuters
Ghana central bank delivers record rate cut as inflation cools rapidly
ACCRA, July 30 (Reuters) - Ghana's central bank slashed its benchmark interest rate (GHCBIR=ECI), opens new tab by 300 basis points to 25% on Wednesday, the largest cut in its history, as inflation slows at a record pace in the gold-, oil- and cocoa-producing economy. The Bank of Ghana said the move reflects growing confidence in the disinflation trend, which has seen consumer prices fall faster than ever before. It was the bank's first cut since September 2024 when it slashed the rate by 200 basis points, mirroring major advanced economies that began their easing cycles. However, price pressures forced the bank to hold and even raise the key rate at subsequent meetings. The West African nation is emerging from its most severe economic crisis in decades. Last month, consumer inflation dropped to 13.7% from 18.4% in May, reaching the lowest level since December 2021. Governor of the Bank of Ghana, Johnson Asiama, told a press conference on Wednesday that macroeconomic conditions have significantly improved with inflation expectations broadly anchored. "Given these considerations, the MPC (Monetary Policy Committee), by a majority decision, voted to lower the monetary policy rate by 300 basis points to 25%," Asiama said. He added that inflation risks were expected to be mitigated through appropriately managed monetary policy frameworks and ongoing fiscal consolidation efforts. The Bank of Ghana had been widely anticipated to reduce the rate by 200 basis points to 26%, according to a Reuters poll of 10 analysts. "It's the beginning of an easing cycle that should continue through the year, since inflation prospects will remain benign for a while," said Leslie Dwight Mensah, economist and research fellow at the Institute for Fiscal Studies. Razia Khan, chief economist for Africa and Middle East at Standard Chartered Bank, said she expects another 700 basis points of easing across the September and November meetings, to reach 18% by year-end. "While domestic utility price increases – which we expect in the (last quarter of the year), were flagged as a potential upside risk to inflation, we do not expect this to reverse Ghana's now well-established disinflation trend," Khan said.
Reuters
a day ago
- Business
- Reuters
Ghana's central bank cuts key rate by 300 basis points as inflation eases
ACCRA, July 30 (Reuters) - Ghana's central bank on Wednesday lowered its benchmark policy rate (GHCBIR=ECI), opens new tab by 300 basis points to 25%, exceeding expectations, as consumer inflation showed signs of continued decline in the gold and cocoa-producing economy. The Bank of Ghana had been widely anticipated to reduce the rate by 200 basis points to 26%, according to a Reuters poll of 10 analysts. "The committee noted that macroeconomic conditions have significantly improved. Inflation expectations are broadly anchored... and confidence in the economy is returning," governor Johnson Asiama, told a news conference. Asiama added that inflation risks are expected to be mitigated through appropriately managed monetary policy frameworks and ongoing fiscal consolidation efforts. "Given these considerations, the MPC, by a majority decision, voted to lower the monetary policy rate by 300 basis points to 25%," he said. Last month, consumer inflation dropped to 13.7% from 18.4% in May, reaching the lowest level since December 2021.
Coin Geek
2 days ago
- Business
- Coin Geek
Ghana plans new framework to regulate digital assets
Getting your Trinity Audio player ready... Ghana is developing a new regulatory framework for the digital asset sector as adoption in cross-border transfers and speculative trading surges. The Bank of Ghana is finalizing the new policy proposal and will submit it to parliament by the end of August, Governor Johnson Asiama told Bloomberg on July 24. It includes a new licensing policy for VASPs and taxation measures for one of the continent's fastest-growing digital asset markets. Asiama says the new framework will enable Ghana to capitalize on digital assets to boost the economy, boost cross-border transfers, and allow authorities to collect financial data. Additionally, it will boost the funding opportunities for local companies, allowing them to attract strategic investment from investors in Africa and beyond. In 2024, African blockchain startups raised $123 million, a report by CV VC revealed. Their share of the venture capital deals nearly doubled to 13%, outperforming other sectors like finance and tech. Ghana is 'late in the game,' says Asiama, noting that millions of Ghanaians have already been using digital assets in speculative trading and cross-border transfers. However, due to a lack of oversight, this volume isn't captured on the country's financial accounts. Left unchecked, the sector could have far-reaching implications on the local currency, he added. In neighboring Nigeria, digital assets have been blamed for the naira's depreciation over the past three years. The government cracked down on the sector for allegedly allowing Nigerians to bypass formal channels and acquire USD-pegged stablecoins at black market rates. The crackdown culminated in the shutdown of offshore exchanges and an $81.5 billion lawsuit against Binance for allegedly orchestrating a 'sophisticated heist' against the Nigerian economy. But while the naira has lost over 70% of its value in the past three years, Ghana's cedi has been on an uptrend, gaining nearly 50% in the past year, which was the best performance globally. According to one report, over 3 million Ghanaians own digital assets, translating to over 17% of the adult population. This ranks the country higher than Singapore, the U.S., Germany, the U.K., and Japan for adoption. The report further revealed that in the year ending June 2024, Ghanaians transacted over $3 billion. 'We do recognize that there's some activity happening. Our goal for this whole process is to put safeguards and rails around it,' commented Kwame Oppong, the central bank's head of fintech and innovation. Ghana is following the growing list of African countries making strides in digital currency regulation. In Kenya, lawmakers are debating the VASP Bill, which would be the most comprehensive framework for digital assets in the region, and have already approved five joint watchdogs for the industry. Nigerian president Bola Tinubu signed a bill in April that recognizes digital assets as law, and it's already attracting global players. Watch: Tech redefines how things are done—Africa is here for it title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen=""> Africa Bank of Ghana Ghana Johnson Asiama Kwame Oppong Regulation
Yahoo
7 days ago
- Business
- Yahoo
Ghana Plans Crypto Firm Licensing in Response to Growing Demand: Bloomberg
Ghana is set to begin licensing cryptocurrency platforms in response to a surge in demand for digital assets in the West African country, Bloomberg reported on Thursday. The country's central bank is finalizing a regulatory approval to submit to parliament by September, according to the report, citing an interview with Bank of Ghana Governor Johnson Asiama. The hope is that regulating the crypto sector will help the Ghana capture revenue and better control its fiat currency. The cedi has grown over 40% against the U.S. dollar in 2025, helping it recover from a loss of nearly 20% last year. This volatility has made it difficult for the central bank to manage inflation. The use of cryptocurrency can exacerbate this problem as many agents are making and receiving crypto payments which are not being captured in the country's financial accounts, Asiama added. Around 17.3% of Ghanian adults own cryptocurrency, equivalent to just over 3 million people, according to a June 2024 report by Middle East-based business news firm Zawya. Crypto transactions in Ghana in the 12 months to June 2024 totaled $3 billion out of a total $125 billion for the whole of sub-Saharan Africa, said Del Titus Bawuah, chief executive officer at Web3 Africa Group, according to Bloomberg's report.
