Republic of ghana is maintaining a cautious arroyo to cryptocurrencies despite its cardinal banking company's plans to launch a digital currency in the new year. Over the by five years, the West African country has get the fastest-growing mobile money market on the continent. The burgeoning number of mobile money users is proof that digitized payments systems are providing a means for people to get financially active.

According to a 2022 economical assay past the World Banking concern, the number of registered mobile money accounts in the country exploded from only iii.8 1000000 to 23.ix one thousand thousand between 2022 and 2022.

The statistics alone speak volumes to the ability of mobile networks in providing a means for previously unbanked or financially-excluded people to transact money remotely. Mobile phones are giving a large number of Ghanaians the run a risk to become financially active without having to use cash or carte services.

The motility to mobile payments has not gone unnoticed by the land'south central bank. At the end of Nov 2022, the Bank of Ghana announced plans to explore the employ of a central banking concern digital currency in the new year's day.

Bank of Ghana governor Dr. Ernest Addison revealed that the bank has been working on a airplane pilot projection with a number of stakeholders to test the issuance and use of a digital currency. The proclamation was made at Ghana's National Cyberbanking Conference at the cease of November. The motility is an effort by the nation's regime to stay beside of the increasing volume of mobile money users in Ghana and drive the digitization of its financial sector.

Crypto unregulated in Ghana

The surge in popularity and users of mobile money services in the country does not necessarily mean that blockchain technology and cryptocurrencies are enjoying the same level of success in Republic of ghana.

Cryptocurrencies are currently unregulated in the West African nation, and at that place are no laws governing their use — a fact which has been confirmed by the Ghana Securities and Exchange Commission to Cointelegraph.

While the sector remains unregulated, the Ghana SEC issued a public alert to investors in March 2022. The note cautions investors to practise their due diligence when dealing with unregistered or unlicensed trading platforms touting "high returns on investment."

In its warning letter, the SEC listed 24 cryptocurrencies that accept gained prominence worldwide, including BTC, ETH, LTC and XRP, while conspicuously stipulating that cryptocurrencies are not recognized equally legal tender in the state.

When asked for a general gauge of the level of interest in cryptocurrencies in Ghana, the SEC's policy inquiry section director, Frank Donkor, told Cointelegraph that an in-depth market place report has however to be undertaken:

"Nosotros have not conducted a market place survey to decide the involvement in cryptocurrencies, withal, as indicated in the public observe, people are attracted to it considering of the promises of high returns on their investments."

Donkor likewise dismissed various reports earlier this year by local media outlets that suggested the local SEC would consider licensing the use of cryptocurrencies. This volition go on to remain a bulwark to entry for cryptocurrency users in the country according to the official:

"There are no legislations backing the trading and use of cryptocurrencies in Ghana. Thus investors who tend to invest in such currencies or assets may be doing so at their own run a risk and are not protected under the Securities police regime in Ghana."

Apathy toward cryptocurrency continues

There seems to be a sure amount of apathy toward cryptocurrencies and blockchain applied science in Ghana, axiomatic in the blanket statement and public warnings issued earlier this year. The Ghana SEC'southward conventionalities that a major drawcard for using cryptocurrency is the promise of loftier returns on investments suggests that the body could be lacking cognition almost the technology and efficacy of the systems underpinning cryptocurrencies like Bitcoin and Ethereum.

Omar Majdoub, president of registered non-turn a profit organization Blockchain Society Ghana, believes that the full general populace likewise as policy makers in the land are ill-informed nigh the basics of cryptocurrency and blockchain engineering.

Co-ordinate to Majdoub, there is a growing involvement in the sector in the country, but misinformation has led many people to perceive all cryptocurrencies equally fraudulent money-making schemes. He added that in that location is curiosity toward the applications of blockchain technology, but bodily adoption of the applied science is depression.

Related: Africa Using Blockchain to Drive Change: Nigeria and Kenya, Part One

Unsuspecting investors around the earth have been duped past various crypto scams, and Ghana's people are no exception. Majdoub suggests that an endeavour to protect the Ghanaian public from similar situations has led to the negative perception toward the sector in 2022:

"I believe government authorities are by and large under informed about cryptocurrencies, and Blockchain Club Ghana hopes to rectify that by having more dialogue. Nosotros promise to analyze the legitimate uses of crypto and how to distinguish from scams."

Will Ghana's CBDC be blockchain-based?

What remains to be seen is whether the Ghana Central Bank'due south digital currency will be adult using blockchain infrastructure. Cointelegraph reached out to the Bank of Republic of ghana to analyze the details of the pilot project for its central banking concern digital currency, but has not received an official response on the matter.

Given the current opinion of the Ghanian SEC and its key banking company, it seems unlikely that the project volition be based on a blockchain platform. At the same time, the explosion of mobile coin users in the country suggests that the medium could be a prime candidate to provide the infrastructure for the planned central banking company digital currency.

Notwithstanding, the possibility of an east-cedi existence issued and bachelor to the public in Ghana is a positive step toward providing a regulated, digitized form of payment in a country that has traditionally struggled with soaring inflation.