Push for stablecoin regulation in Ghana

The Co-founder and Chief Executive Officer (CEO) of Yellow Card, Chris Maurice, has stressed the need for Ghana to develop a legal framework that does not only protect individuals and businesses but also promotes an environment where FinTech companies can thrive.

He explained that the absence of a clear legal stablecoin regulation was limiting the country’s potential to fully leverage its growing adoption of cryptocurrency technology.

“Ghana is one of the top 20 countries in the world for adoption of this technology, but regulation is key to safeguarding users and expanding its impact,” he said.

On August 16, 2024, the Bank of Ghana (BoG) introduced draft regulations aimed at establishing a comprehensive framework for Ghana's digital asset sector.

The proposed guidelines are designed to foster financial inclusion, ensure economic stability and provide protection for consumers in the rapidly evolving cryptocurrency market.

Event

Speaking to the media on the sidelines of a dialogue event on the theme: “The Influence of Stablecoins in Cross-Border Transactions," in Accra, Mr Maurice said although stablecoins are already in use across Ghana, the absence of regulation made it difficult to fully unlock their potential.

The event organised by Yellow Card brought together players in the FinTech industry to explore the role of stablecoins in facilitating seamless, efficient and secure international payments.

Some attendees at the event were members of the Yellow Card Executive team, the President of the Ghana Fintech and Payments Association (GFPA), Martin Kwame Awagah; Ghana Country Director for Onafriq, Ike Anison; the Head of Regulation at MTN Ghana, Paapa Osei and representatives from the United Nations Development Programme (UNDP), CalBank, Ecobank, the American Chamber of Commerce (AmCham), Visa, IBM, Access Bank, Express Pay and Paystack.

With the appointment of a new finance minister, he expressed hope that cryptocurrency regulation will become a priority for the Ghanaian government.

“The technology is here to stay. People are already using stablecoins and the regulators understand that. It’s time for Ghana to be at the forefront of this innovation, rather than just consuming it from elsewhere,” he said.

The General Counsel for Yellow Card Financial Inc, Craig A. Stoehr, emphasised the importance of the event, noting that Ghana’s selection as the host underscored the country’s strategic role in advancing crypto asset discussions.

He assessed the draft regulations by the BoG, which addressed regulations on crypto assets, noting its early stage but promising potential.

“It’s starting and that is good. But if you look across the continent, we have seven jurisdictions where we already have crypto asset regulations and licensing frameworks,” he added, stressing the importance of clear regulations in promoting the industry’s growth.