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Ghanaian Central Bank Introduces Sandbox for Financial Innovation

  • The sandbox environment is open to unlicensed financial services firms.
  • The sandbox was created in partnership with Emtech Solutions Inc.

As part of its goal of creating an appropriate regulatory framework that supports innovation, financial inclusion and economic security, Ghana’s central bank has announced the opening of a regulation and innovation sandbox. Ghana Bank BOG officials will have a better understanding of creative products thanks to the sandbox, and it may be possible to “make potential improvements to legal and regulatory requirements to encapsulate emerging technologies.”

The bank clarified that all Ghanaian financial institutions under the jurisdiction of the Financial Services Regulatory Commission are welcome to use the hedge fund it has established in partnership with Emtech Solutions Inc. The sandbox environment is open to unlicensed financial services firms whose advanced products comply with regulations.

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According to the central bank’s press release, some of the eligible technologies include “new or immature” digital financial services technology. The reasons for the need for the protection fund were clarified in a statement issued by the Central Bank.

Statement text:

The Bank of Ghana, through this initiative, affirms its commitment to providing the enabling environment for innovation to enhance financial inclusion and facilitate the digitalization and monetary agenda in Ghana. With the support of FSD Africa, we will engage multiple stakeholders including industry groups, associations and innovation hubs.”

But in the meantime, the central bank pointed to the central bank’s Central Bank Digital Currency (CBDC) initiative, which has “the potential to foster innovation in digital financial services.” According to the statement, CBDC or “e-cedi” has the potential to significantly boost the digitization of Ghana’s financial industry if it is “mainstreamed”.

BOG said that its acceptance of a “blockchain solution” during the sandbox pilot phase demonstrates its “commitment to innovation” with respect to blockchain technology.

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