The Bank of Ghana (BoG) has reaffirmed its commitment to maintaining cedi stability while actively regulating digital assets to protect Ghana’s financial system from emerging risks posed by cryptocurrencies and virtual currencies.
Speaking on behalf of Governor Dr. Johnson Pandit Asiama at the 29th National Banking and Ethics Conference organised by the Chartered Institute of Bankers (CIB) Ghana, Director of Banking Supervision Ismail Adam described the conference theme as timely and essential for safeguarding Ghana’s economic wellbeing. The event focused on maintaining currency stability amid digital asset disruptions.
Adam explained that millions of dollars in hard currency flow monthly through crypto wallets and peer-to-peer platforms, often operating outside formal banking channels. This undermines regulators’ ability to monitor capital flows and enforce monetary policy effectively. While economic actors increasingly use stablecoins and cryptocurrencies pegged to the US dollar as hedges against currency volatility, the speculative nature of these assets worsens financial system volatility.
The central bank is shifting from a cautionary stance to active regulation through development of the Virtual Asset Service Providers (VASP) Bill in collaboration with the Securities and Exchange Commission (SEC) and the Financial Intelligence Centre (FIC). The legislation provides a legal framework for regulating all virtual asset service providers, safeguarding Ghana’s financial sector stability by preventing digital asset induced system disruptions, regulatory arbitrage, and currency substitution.
“This would further ensure that service providers comply with global Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements with robust due diligence and reporting mechanisms,” Adam stated.
The Bank of Ghana has commenced registration of virtual asset providers operating in Ghana, including crypto exchanges, wallet providers, custody services, and stablecoin issuers. This exercise serves data gathering and market assessment purposes. The July 2025 mandatory registration identified over 100 companies serving an estimated three million Ghanaian users who conducted more than three billion dollars in transactions between July 2023 and June 2024.
Adam highlighted Ghana’s progress in piloting the Central Bank Digital Currency (CBDC), known as the e-Cedi, designed to preserve monetary sovereignty, strengthen monetary policy transmission, and provide a legal, safe, and programmable alternative to private digital assets. The retail version is expected to launch by year end, contingent on necessary legislation.
Presenting current economic indicators, Adam revealed impressive gains in currency performance. The Ghana cedi has appreciated cumulatively by 37.04 percent year to date as of October 17, 2025, reversing the sharp 19.2 percent depreciation experienced in 2024. The World Bank proclaimed the cedi as the best performing currency in Sub-Saharan Africa during the first eight months of 2025.
Inflation eased dramatically to 8.0 percent in October 2025 from 23.8 percent in December 2024, driven by tight monetary policy, exchange rate stability, and broad moderation in price pressures. Gross international reserves increased to 11.4 billion US dollars, equivalent to 4.8 months of import cover, offering meaningful cushion against external risks. Ghana recorded a strong trade surplus of 6.8 billion dollars in September 2025.
These gains reflect deliberate action by the Bank of Ghana working collaboratively with government to implement strategic initiatives anchored on restoring stability, rebuilding market confidence, and laying foundations for sustained growth. While global dynamics including possible US dollar rebounds or commodity price reductions could threaten cedi stability, domestic policy stance remains strong enough to cushion such shifts.
Adam cautioned against speculative behaviour in the currency market as Ghana commemorates the 60th anniversary of the cedi’s issue. He warned that market dynamics have changed to reflect the current policy environment, suggesting that holding dollars in anticipation of currency depreciation may not be wise.
“We should all reaffirm our collective responsibility to protect the value and integrity of the currency. In addition to being a medium of exchange, the Cedi is a symbol of our pride, heritage and shared aspirations for a prosperous future,” Adam concluded.
The proposed regulatory framework establishes six guiding principles including ensuring providers face regulation, applying activity-based and risk-sensitive oversight, enhancing inter-agency collaboration, and boosting public literacy on digital finance. The framework proposes creating a Virtual Assets Regulatory Office to coordinate supervision across multiple agencies including the Ghana Revenue Authority, National Communications Authority, and Cybersecurity Authority.
Source: newsghana.com.gh
