Accra: The Bank of Ghana (BoG) has urged virtual asset and digital financial services providers to consider developing local stablecoins to support the stability of the cedi. Acting Head of Fintech and Virtual Assets at the Bank of Ghana, Owuraku Asare, highlighted the importance of this initiative as the sector prepares for the roll-out of regulation. He emphasized the need to ensure that foreign exchange trading activities do not undermine the recent gains made by the local currency.
According to Ghana Web, Asare pointed out that locally developed stablecoins could play a supportive role in consolidating the cedi's performance against major trading currencies and averting future forex-related pressures. He stressed the importance of protecting the local currency gains, stating, "We need to be very careful that individual personal finance gains do not wipe out the gains of our local currency against major trading currencies." Asare made these remarks at the Ghana Virtual Assets and Financial Services Symposium, an event organized by the Chamber of Digital Assets and Blockchain Innovations-Ghana (CDABI) in partnership with the Financial Intelligence Centre (FIC), the Bank of Ghana, and the Securities and Exchange Commission (SEC).
A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically pegged 1:1 to a fiat currency such as the US dollar or to a commodity like gold. Unlike highly volatile cryptocurrencies such as Bitcoin, stablecoins aim to provide price stability for payments, trading, and decentralized finance (DeFi), usually backed by reserves of the underlying asset or through algorithmic supply adjustments.
Deputy Director-General of the Securities and Exchange Commission, Mensah Thompson, remarked that the improving macroeconomic environment provides a strong foundation for continued market development and the advancement of key regulatory and strategic initiatives. He indicated that the SEC has undertaken targeted measures to strengthen market integrity, enhance investor confidence, and support the sustainable growth of Ghana's capital market. The commission is developing Guidelines for Digital and Online Foreign Exchange Trading Activities to provide regulatory clarity and ensure emerging digital trading platforms operate in a manner that protects investors, promotes transparency, and upholds the integrity and stability of the financial system.
President of the Chamber of Digital Assets and Blockchain Innovations-Ghana, Caleb Afaglo, reiterated that virtual assets are here to stay and that Ghana is positioning itself to participate in a multi-trillion-dollar industry, making regulation essential. He commended regulatory bodies such as the Bank of Ghana, the Securities and Exchange Commission, and the Financial Intelligence Centre for their openness and forward-looking approach. Afaglo emphasized the importance of collaboration between regulators, industry, and stakeholders to build an ecosystem that commands both domestic confidence and international respect.