Ghana To Regulate Bitcoin and Crypto Platforms as Adoption Surges Across Africa

Ghana is preparing to introduce licensing requirements for Bitcoin and cryptocurrency platforms under a forthcoming regulatory framework expected to reach parliament by September, Bank of Ghana Governor Johnson Asiama told Bloomberg.

The central bank's move is intended to bring oversight to Bitcoin and crypto usage, strengthen financial data reporting, and enhance management of the national currency, the cedi. 

After rebounding 48% this past year following a sharp 25% drop, the cedi’s volatility has complicated efforts to control inflation.

“We are actually late in the game,” said Governor Asiama. 

He noted that many individuals and businesses in Ghana transact in Bitcoin and crypto, but these activities go unrecorded due to the lack of formal regulation, which “has implications for the local currency.”

With inflation at 13.7% in June and a policy interest rate of 28%, Ghana is currently experiencing its highest real interest rate in two decades.

Bloomberg reports that approximately three million adults in Ghana, 17% of the population, use Bitcoin and cryptocurrencies. 

Between July 2023 and June 2024, Bitcoin and crypto transaction volume in the country hit $3 billion, compared to $59 billion in Nigeria and $125 billion across sub-Saharan Africa.

“It is in the interest of African authorities to mainstream cryptocurrency into their financial system for better oversight,” said Web3 Africa Group CEO Del Titus Bawuah. 

“Clearly data supports that companies and citizens heavily use virtual currencies.”