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Ghana is fast rising as a major player in the cryptocurrency market across Africa. The rapidly growing space includes opportunities that are, at the same time, exhilarating and problems very peculiar. This article shall trace the contemporary status of the cryptocurrency industry in Ghana by highlighting government efforts, regulating frameworks, major investments, and key players shaping the landscape.
The Ghanaian government is not sitting on its hands; it works on several cryptocurrency initiatives that mean enhancing financial addition and innovation.
GIFE, or Ghana Integrated Financial Ecosystem, is a collaborative initiative between the Bank of Ghana, Development Bank Ghana, and the Monetary Authority of Singapore. The objective of this initiative is to enhance access to financial services for micro, small, and medium enterprises. It will further encourage closer collaboration between Ghana and Singapore in trade and financial services.
eCedi Launch: This retail token-based CBDC was launched by the BOG in March 2022. It provides an easier way of storing and transferring funds across devices. It does all that cash would do, only it is empowered with all other advantages. The eCedi will be made available to every individual and business for low-value transactions, using legacy payment channels that will reduce the risks of banking disintermediation.
While the government explores the potential of cryptocurrencies, the regulatory landscape in Ghana remains unsettled. Since the SEC plays an important role in the regulation of the security market, their stand on cryptocurrency currently is very cautious.
Cryptocurrencies Not a Legal Tender: According to the SEC, all classes of cryptocurrencies have no legal status as tender or currency in Ghana.
Unregistered/unlicensed cryptocurrency trading platforms: At the moment, no platform operating in the trading of cryptocurrency is licensed or regulated by the commission.
Investor alert: The SEC would like to reiterate and remind investors that, at the moment, cryptocurrencies and all associates are not within their regulatory purview. People investing in the market have been warned to do so with the awareness that such activities shall not have the protection of Ghana's securities laws.
Outside of the SEC, there are some influential regulatory bodies and associations that are heavily involved in shaping the future of cryptocurrency across Ghana as a whole:
Blockchain Builders Association Ghana: This association centers on building blockchain technology adoption across various sectors.
Blockchain Society Ghana: This society looks into creating education and awareness about blockchain and its application.
Ghana Fintech and Payments Association: The association would facilitate the growth and development of FinTech within Ghana and would ideally include cryptocurrency solutions.
CFA Society Ghana: This body helps uphold professional standards and ethics within the financial industry, some of which could impact future cryptocurrency regulations.
The Ghanaian cryptocurrency market has witnessed major investments, a pointer to growing interest:
Pacminer US$50 Million Joint Venture (2023): The partnership is between the Government agencies of Ghana and blockchain enterprises. It will enhance infrastructure for mining and user experience across the sector chain of Blockchain. It will put in efforts for the optimization of mining pools, building modern infrastructure of clouds, and upgrading mining machines.
Zeepay Raises $940,000 Investment from GOODsoil VC (2022): This pan-African focused venture capital firm infused $940,000 into Zeepay, a Ghanaian fintech company with far-reaching digital asset tentacles across the African continent. The investment would help drive financial inclusion on the continent, while potentially seeing services offered by Zeepay scale towards cryptocurrencies for more far-reaching financial solutions.
The Ghanaian cryptocurrency space is inhabited by different players, including:
Financial Services: Mizumi Inc, Speednance, Prestmit, ebitpoint. These are probable participants to provide financial services regarding cryptocurrency.
Blockchain Infrastructure: Boxplay Ventures, eBitcoinics.com. These are the infrastructure providers for the running of blockchain.
Others: Green Earth Agro, interested in the probable usage of cryptocurrency in agriculture; BTCGHANA, a cryptocurrency exchange; Atatfa Group, considering probable crypto adoption; and LiveWalle, a crypto wallet provider.
What Ghana offers is an exciting environment for cryptocurrencies: On the one hand, there is huge potential coming from government initiatives and investments, but on the other, the lack of comprehensive regulations implies a cautious approach. With regulatory bodies evolving their stance and industry associations developing standards, the future of cryptocurrency in Ghana holds much promise for financial inclusion and driving innovation.
