According to a statement released by the Bank of Ghana, Ghana’s recently launched regulatory and innovation sandbox is the It is the latest evidence of the Central Bank’s commitment to a regulatory environment that promotes “innovation, financial inclusion, and financial stability. According to the central bank, innovations covered by the sandbox include digital financial services technologies that are considered new or “immature.”
Fostering “innovation and financial stability”
The Central Bank of Ghana touts its recently launched Regulation and Innovation Sandbox as fulfilling its “commitment to continuously evolve a conducive regulatory environment that promotes innovation, financial inclusion, and financial stability.” The bank adds that the sandbox will help the Bank of Ghana (BOG) better understand its innovative products and “allow for the possibility of improving legal and regulatory requirements to incorporate new technologies.”
The sandbox, developed in collaboration with Emtech Solutions Inc, is open to all regulated financial institutions in Ghana, according to the bank’s statement. Unlicensed fintech startups whose innovative products meet regulatory requirements are also eligible to use the sandbox environment.
According to the Central Bank Press ReleaseStatementAccording to the Central Bank Press Release, some of the eligible innovations include digital financial services technologies that are considered new or immature. Disruptive digital financial services products and solutions that seek to address “sustainable financial inclusion challenges” may also be eligible for the sandbox.
Financial Inclusion in Ghana
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The central bank’s press release explains why the sandbox is needed as follows.
Through this initiative, the Bank of Ghana is committed to providing an innovation-enabling environment to promote financial inclusion and advance Ghana’s digitization and cash-light agenda With FSD Africa’s support, we are bringing together industry associations, associations and innovation hubs to engage various stakeholders.
Meanwhile, the central bank statement mentions the BOG’s Central Bank Digital Currency (CBDC) project, which “has the potential to boost innovation in digital financial services.” if CBDC or “e-cedi” becomes “mainstream” could further drive the digitization of Ghana’s financial sector, the statement said.
With regard to blockchain technology, the BOG argued that its decision to allow “blockchain solutions” during the sandbox pilot phase is evidence of its “commitment to innovation.”
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