Latest news with #JohnsonAsiama
Coin Geek
7 hours ago
- Business
- Coin Geek
Ghana plans new framework to regulate digital assets
Getting your Trinity Audio player ready... Ghana is developing a new regulatory framework for the digital asset sector as adoption in cross-border transfers and speculative trading surges. The Bank of Ghana is finalizing the new policy proposal and will submit it to parliament by the end of August, Governor Johnson Asiama told Bloomberg on July 24. It includes a new licensing policy for VASPs and taxation measures for one of the continent's fastest-growing digital asset markets. Asiama says the new framework will enable Ghana to capitalize on digital assets to boost the economy, boost cross-border transfers, and allow authorities to collect financial data. Additionally, it will boost the funding opportunities for local companies, allowing them to attract strategic investment from investors in Africa and beyond. In 2024, African blockchain startups raised $123 million, a report by CV VC revealed. Their share of the venture capital deals nearly doubled to 13%, outperforming other sectors like finance and tech. Ghana is 'late in the game,' says Asiama, noting that millions of Ghanaians have already been using digital assets in speculative trading and cross-border transfers. However, due to a lack of oversight, this volume isn't captured on the country's financial accounts. Left unchecked, the sector could have far-reaching implications on the local currency, he added. In neighboring Nigeria, digital assets have been blamed for the naira's depreciation over the past three years. The government cracked down on the sector for allegedly allowing Nigerians to bypass formal channels and acquire USD-pegged stablecoins at black market rates. The crackdown culminated in the shutdown of offshore exchanges and an $81.5 billion lawsuit against Binance for allegedly orchestrating a 'sophisticated heist' against the Nigerian economy. But while the naira has lost over 70% of its value in the past three years, Ghana's cedi has been on an uptrend, gaining nearly 50% in the past year, which was the best performance globally. According to one report, over 3 million Ghanaians own digital assets, translating to over 17% of the adult population. This ranks the country higher than Singapore, the U.S., Germany, the U.K., and Japan for adoption. The report further revealed that in the year ending June 2024, Ghanaians transacted over $3 billion. 'We do recognize that there's some activity happening. Our goal for this whole process is to put safeguards and rails around it,' commented Kwame Oppong, the central bank's head of fintech and innovation. Ghana is following the growing list of African countries making strides in digital currency regulation. In Kenya, lawmakers are debating the VASP Bill, which would be the most comprehensive framework for digital assets in the region, and have already approved five joint watchdogs for the industry. Nigerian president Bola Tinubu signed a bill in April that recognizes digital assets as law, and it's already attracting global players. Watch: Tech redefines how things are done—Africa is here for it title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen=""> Africa Bank of Ghana Ghana Johnson Asiama Kwame Oppong Regulation
Yahoo
5 days ago
- Business
- Yahoo
Ghana Plans Crypto Firm Licensing in Response to Growing Demand: Bloomberg
Ghana is set to begin licensing cryptocurrency platforms in response to a surge in demand for digital assets in the West African country, Bloomberg reported on Thursday. The country's central bank is finalizing a regulatory approval to submit to parliament by September, according to the report, citing an interview with Bank of Ghana Governor Johnson Asiama. The hope is that regulating the crypto sector will help the Ghana capture revenue and better control its fiat currency. The cedi has grown over 40% against the U.S. dollar in 2025, helping it recover from a loss of nearly 20% last year. This volatility has made it difficult for the central bank to manage inflation. The use of cryptocurrency can exacerbate this problem as many agents are making and receiving crypto payments which are not being captured in the country's financial accounts, Asiama added. Around 17.3% of Ghanian adults own cryptocurrency, equivalent to just over 3 million people, according to a June 2024 report by Middle East-based business news firm Zawya. Crypto transactions in Ghana in the 12 months to June 2024 totaled $3 billion out of a total $125 billion for the whole of sub-Saharan Africa, said Del Titus Bawuah, chief executive officer at Web3 Africa Group, according to Bloomberg's report.
Bloomberg
6 days ago
- Business
- Bloomberg
Ghana to License Crypto Firms as Digital Asset Demand Surges
Ghana plans to license crypto platforms as authorities seek to capture revenue as well as regulate an asset class used by about millions in the West African nation. The central bank is finalizing a regulatory framework to send to parliament by September, Governor of the Bank of Ghana Johnson Asiama said in an interview. The proposed law will allow the nation to leverage cryptocurrencies, boost cross-border trade, attract strategic investment and collect financial data, he said.
Reuters
18-07-2025
- Business
- Reuters
Ghana central bank governor urged MPC to consider how to support economic recovery
ACCRA, July 18 (Reuters) - Ghana's central bank governor urged an emergency meeting of the bank's Monetary Policy Committee to consider how to support the country's economic recovery without taking undue risks, a copy of his remarks sent to journalists on Friday showed. The West African country has been emerging from its most severe economic crisis in decades, with economic growth accelerating in the first quarter and inflation (GHCPIY=ECI), opens new tab dropping to its lowest level since December 2021 in June. The Bank of Ghana convened Thursday's special MPC meeting to review economic data and market developments. But in the end it did not take any decision on its policy rate (GHCBIR=ECI), opens new tab ahead of the regular meeting Governor Johnson Asiama later said would take place in about 10 days' time. "The key question is whether the current macroeconomic configuration permits a recalibration of the policy stance," Asiama said in his opening remarks to MPC members on Thursday. "With inflation expectations more firmly anchored, external buffers strengthened, and confidence returning, we must assess how to support the recovery without compromising the gains achieved," he added. Among positive macroeconomic indicators the governor cited Ghana's robust external position, reflected in its $5.6 billion trade surplus in the first half of the year, and its wider current account surplus of $3.4 billion. He also noted a more than 40% year-to-date appreciation of the cedi against the dollar and healthier reserves but said risks remained from last year's fiscal deficit and an uncertain global economic environment.
Reuters
18-07-2025
- Business
- Reuters
Ghana's central bank will discuss key rate in 10 days, governor says
ACCRA, July 17 (Reuters) - Ghana's central bank held an emergency meeting on Thursday to review economic data and market developments, but did not discuss its key policy rate, Governor Johnson Asiama said, adding the main meeting is in 10 days. In a statement released late on Wednesday, the Bank of Ghana said it would announce its policy decision the day after the special session. The central bank's fourth rate-setting Monetary Policy Committee meeting for the year had initially been slated to start on July 28, with the rate decision expected on July 30. At a Thursday event in the capital, Accra, the central bank governor said that members of the MPC had not discussed the policy rate at the emergency meeting. They met to "review numbers and also take stock of some of the developments in the markets to get a sense of what is going on and what our options are ahead of their meeting," Asiama said. The governor added that the Monetary Policy Committee will reconvene in 10 days to work on a policy statement. The Bank of Ghana last held a scheduled MPC meeting in May, where it opted to maintain the policy rate at 28.0%, maintaining its tight monetary policy as inflationary pressures continued to ease due to exchange rate stability and fiscal consolidation. Ghana's consumer price inflation slowed for the sixth month in a row to 13.7% in June, its lowest level since 2021, while the bellwether producer price inflation fell to 5.9% year-on-year in June compared with 10.2% the previous month. The finance minister is expected to present the cocoa-, gold-, and oil-producing West African nation's mid-year fiscal policy review on July 24.
