The Bank Of Ghana will start developing a comprehensive framework for the regulation of the digital asset industry.
This announcement by made by Bank Of Ghana Governor, Dr. Addison at the Chartered Institute of Bankers Ghana 2022 Annual Bankers’ Dinner Day event last week.
The Government made the announcement in regards to the growing interest and patronage of the public in digital and virtual assets, popularly called “crypto currencies”.
“Given the recent trends, the BoG initiated processes to actively study and monitor cryptocurrency and related technologies and models such as blockchain, decentralised finance and stablecoins. The bank has subsequently gained institutional understanding of the concepts, monitored global market developments, and reviewed several regulatory and global standards setting bodies across various jurisdictions, including the Financial Action Taskforce, Financial Stability Board, the Basel Committee on Banking Supervision,” the Governor stated.
“In all these, the clearest takeaway for the bank is the fact that, crypto currencies are digital assets and not currency, and in as much as cryptocurrency is associated with other key risks including volatility, cyber-theft, loss of funds with potential threat to financial stability, an outright ban of cryptocurrency has proven ineffective, mainly due to its decentralised and borderless nature“, he added.
The Governor did not give a timeline for the development of the framework.
