Politics and the Future of Cryptocurrency in Ghana | Opportunities and Concerns

I am closely following the Ghana Government's stance on the cryptocurrency approach with great interest. Currently they have a very proactive stance with regards to cryptocurrency. They seem to have seen it as an emerging technology worth embracing rather than burying its head in the sand like some other countries have done.

Some governments seem to have a very strong hate for this beautiful technology, and I don't even understand what calls for this. Fortunately, my country is not one of them. Some of the countries that has so far been exhibiting some kind of negative impression towards the cryptocurrency industry include, Nigeria, China, Rusia, India, Ecuador, Iceland, Sweden and several others. Pakistan is the latest country to have joined this wave after recently announcing their intention to ban cryptocurrencies in the country. They are enforcing strict restrictions towards crypto investment and Bitcoin mining. Most of these restrictions are not backed by any concrete reasons. Some of them I strongly believe are deeply related to political influences. Despite all these, Ghana and other countries like South Africa, Brazil, Mexico, El Salvador still accepts crypto payments without any ban on them With El Salvador in lead for being the first country to make country a legal tender.

When you take a look at the Ghana Government's take on cryptocurrency, it is quite simple and straightforward. Although the government has not officially made cryptocurrency a legal tender, they have understood that cryptocurrency is a technology that is here to stay, hence, instead of banning or enforcing some restrictions, they have rather taken steps to regulate it. Through this smart move by the government, the country will be able to reap the benefits of cryptocurrency while minimizing the risks.

The State of Cryptocurrency Investment in Ghana

The current state of crypto in the country is that the government has not issued it's official stance on it's regulations. Hence, both individuals and organizations are free to use any cryptocurrency of their choice. The Bank of Ghana is currently monitoring the development of cryptocurrencies in the global scale before taking appropriate measures to regulate the industry in the country. The youth has been benefiting a lot from trading and investing in cryptocurrencies through some of the popular exchanges like Binance, kraken, Huobi and the rest. Ghana is currently one of the African countries with rising peer to peer trading volume after big countries like Nigeria and South Africa. We are currently anticipating for possible regulations in the future. But until then, everyone is free with their dealings with the various cryptocurrencies.

Back in 2021, Ghana’s Securities and Exchange Commission (SEC) released a warning to all West Africans to avoid dealing with cryptocurrencies src. This statement is something that was not expected from the commission but upon further explanation by the Deputy Director General of the commission, the statement was intended to inform investors and others that are concerned about cryptocurrencies that, none of the cryptocurrencies are accepted as legal tender in Ghana. This doesn't mean you will be penalized if found dealing with crypto like other countries. But they are setting up a fintech round table to investigate more into cryptocurrencies.

This was a statement made my the Dep. Gen. Secretary of Ghana's SEC

"(The) Bank of Ghana does not treat it as a form of payment, it is not a legal tender but we will be engaging further to come out with frameworks.
...Paul Ababio, Ghana’s Deputy Director-General of the (SEC)

This warning came at a time when some individuals and groups in the country were championing the release of their own cryptocurrencies to disregarding the central currency, one of such incidences was the rumor of the FREEDOM COIN.

In few months' time after this warning, the Bank of Ghana announced its plan to pilot a digital cedi currency known as E-CEDI. This was a clear exhibition of the positive impression the government have over cryptocurrencies. The E-Cedi according to the BOGs statements will undergo some phases before its release to help the central bank determine the digital currencies feasibility. They outlined the need for having a digital currency as a country and how it will go a long way in helping the country's economy. They also encouraged the youth to only consider dealing with cryptocurrency if they have the basic understanding of the work of cryptocurrencies and the blockchain technology.

This should give you an idea of how optimistic the Ghanaian government is towards future of cryptocurrency development. I have seen this approach by the Bank of Ghana and the SEC to be the right way for the fact that, cryptocurrencies are still growing, and many people still don't understand how it works. They first of all tried to warm the citizens about their risks and then later come out with their plans towards the industry's growth.

But here's the thing: The fact that Ghana is practices the multi-party system and the frequent change in Governments can greatly influence the current rulings on cryptocurrencies. Considering how politics affects almost everything in the country these days. They may try to regulate cryptocurrency without fully understanding how it works or the risks involved. This worries me. If politicians get involved, they could end up making things worse. They might pass laws that stifle innovation or create unnecessary barriers for legitimate businesses. I hope that doesn't happen. I am expecting the BOG to continue to take a measured approach to this issue as they have been doing and let's also hope the politicians don't try to score cheap political points by regulating something they don't fully understand. This could place Ghana is a higher rank among countries being positively impacted by this beautiful technology.

By striking a smart balance between regulation and innovation without letting politics get in the way, Ghana's cryptocurrency industry will end up benefiting everyone.

The Growth of cryptocurrencies is obvious. There always bad players in every industry trying to paint it black, and the crypto space is not left out. We only need to find ways and means to adapt and play along. It's good as a government to be always careful in dealing with new developments. Especially cryptocurrencies looking at how volatile the system is. I hope to see more innovative ideas from our leader without any iota of their usual political games.

Thank you for your time in my blog. Stay safe!