Cryptocurrencies have been in use around the world, especially in the developed world (Africa) ever since they came onto the scene after the end of the global financial crisis in 2009. In Europe, the US and industrialized parts of Asia they have become mainstream currencies.
However, in Africa in general and Ghana in particular, cryptocurrency use is still in its infancy. A few weeks ago, Ghana’s central bank, the Bank of Ghana, was compelled to even issue a statement on cryptocurrencies and their use in Ghana. The Bank of Ghana in its statement sought to give the impression that cryptocurrency usage in Ghana was not yet formally regulated and therefore cautioned the general public to be careful in dealings involving cryptocurrencies especially with institutions that purport to deal in them.

This statement from the Bank of Ghana was a bit confusing for many people because some people interpreted it to mean that dealing in cryptocurrencies in Ghana was somehow illegal. However, all that the Bank of Ghana sought to do was to make the statement that it had not yet put in place regulations with respect to cryptocurrencies as a means of payments. The Bank of Ghana is responsible for regulating all payments and payment systems in Ghana.
A few of the players in the country who deal in cryptocurrencies granted interviews to media houses to correct the impression that dealing in cryptocurrencies was illegal. They had to assure the public that what the Bank of Ghana really meant by its statement was just to alert the public that it has not yet put in place binding regulations on cryptocurrencies to protect them from potential fraudsters and that it was in the process of consulting with relevant stakeholders and formulating the needed regulations for cryptocurrency usage in Ghana.

Cryptocurrencies have been in use by people in Ghana for a few years now. However, their usage in Ghana is not currently big enough as compared to other African states like South Africa and Kenya. South Africa and Kenya have a more developed and vibrant cryptocurrency regime as compared to Ghana. Ghana has been slow at cryptocurrency adoption mainly because e-commerce generally is in its infancy as compared to other places on the African continent and beyond. Regulation in Ghana also only arises when an activity becomes so prominent that abuses are feared by regulators, consequently regulation is generally slow.

All this notwithstanding, cryptocurrency usage in Ghana appears to have a bright future because it appears to be following the pattern of “mobile money” evolution in Ghana and Africa. Mobile money usage in Ghana and Africa was not keenly welcomed by the central bank and other financial institutions at the onset. Now mobile money transactions form a chunk of all financial and payment transactions in Ghana and many other African countries, simply for its convenience and ease of usage. I predict the same for cryptocurrency usage in Ghana in particular and Africa in general especially when the needed regulations are finally put in place.

It will definitely catch on!

The article was originally published on AML Knowledge Centre: http://aml-knowledge-centre.org/cryptocurrencies-africa-ghanaian-situation/