The Central Bank of Ghana Launches a Regulatory and Innovation Sandbox Prioritizing Blockchain Technology

The Central Bank of Ghana (BoG)  has launched a regulatory and innovation sandbox pilot in line with its commitment to create an inclusive regulatory environment which promotes FinTech and innovation. The sandbox pilot will test innovative products, services, and business models under the regulator’s supervision.

The Bank of Ghana has specifically mentioned that the sandbox will give preference to products and services leveraging blockchain technology and remittances among others.

Below is the complete outline of categories that will be given preference in the sandbox pilot:

  • Blockchain technology
  • Remittance products
  • Crowdfunding products and services
  • e-KYC platforms
  • RegTech (regulatory technology)
  • SupTech (supervisory technology)
  • Digital banking
  • Products and services targeting women financial inclusion
  • Innovative merchant payment solutions for MSMEs

25 Feb BoG Regulatory Sandbox press release
25th Feb BoG Regulatory Sandbox press release

The sandbox will be open and available to:

  • Banks
  • Specialized deposit-taking institutions and payment service
  • providers such as dedicated electronic money issuers
  • Unregulated entities and persons with innovations that meet requirements

Innovations eligible for the regulatory and innovation sandbox environment will have to satisfy any of the following broad categories:

  • New digital business models not currently covered explicitly or implicitly under any regulation
  • New and immature digital financial service technology
  • Innovative digital financial services products that have the potential of addressing a persistent financial inclusion challenge

In 2020, the Central bank Of Ghana expressed its interest in developing a virtual currency for the economy. And the new sandbox could just be a step in that direction.

A recent report by the International Monetary Fund (IMF) also listed Ghana as one of the 40 countries globally legally allowed to issue a digital currency. Out of the list, only 5 African countries are listed with Ghana being among them with its E-Cedi initiative.

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