Central Bank of Ghana Launches Regulatory Sandbox Pilot for Blockchain and Financial Projects
Ghana’s apex bank has revealed a sandbox test launch to support the growth of blockchain-based and financial-related services.
Sandbox Launched to innovate Ghana Financial Services
The central bank revealed this development in a recent press release.
According to the report, the sandbox will cover a wide range of innovations within the financial services sector and improve the country’s financial inclusion. Furthermore, the bank is seeking remittance and crowdfunding products as well as new merchant payment solutions for small and medium scale businesses.
The apex bank also revealed that it would make available the sandbox to banks, deposit institutions, and unregulated financial entities and persons that meet the requirements.
“The sandbox will be available to banks, specialized deposit-taking institutions, and payment service providers, including dedicated electronic money issuers as well as unregulated entities and persons that have innovations that meet the sandbox requirements,” it stated.
The Bank of Ghana also stated that the project was one way it intends to breach the gap on financial inclusion in the country. The bank also directed that entities with innovations that follow the requirements can apply for evaluation and consideration.
The sandbox program was developed by fintech firm EMTECH in collaboration with the Bank of Ghana.
Both parties signed a partnership in 2020 which sought to create products that would improve the financial sector. EMTECH has also partnered with tech giant Microsoft to develop a compliance platform that would enable central banks to solve compliance issues. Banks will also use the platform to test central bank digital currencies (CBDC) safely.
Ghana a Growing Crypto Hub
Ghana is an emerging cryptocurrency hub in Africa, with its teeming population of youths turning towards digital currencies. The government has also made a legal framework towards regulating cryptocurrencies and exchanges. It has also sought to attract blockchain firms as it looks to expand its existing financial infrastructure.
The Bank of Ghana had hinted in 2019 that the country could issue a CBDC in the future. However, no concrete plans have been revealed for this development. The sandbox project is a good innovation by the apex bank, and it is likely to spur the growth of fintech platforms in the country.