Ghana Central Bank Introduces Financial Innovation Sandbox

• The sandbox environment is open to unlicensed financial service businesses.
• The sandbox has been created in partnership with Emtech Solutions Inc.

As part of its aim to continually create a favorable regulatory framework that supports innovation, financial inclusion, and economic security, the Ghanaian central bank has announced the opening of a regulatory and innovation sandbox. Bank of Ghana (BOG) officials would have a better grasp of creative products thanks to the sandbox, and “for potential improvements to legal and regulatory requirements to encapsulate emerging technologies” may be possible.

The bank has made it clear that all Ghanaian financial institutions under the jurisdiction of the Financial Services Regulatory Commission are welcome to use the sandbox it has created in partnership with Emtech Solutions Inc. The sandbox environment is open to unlicensed financial service businesses whose breakthrough products are in compliance with the regulations.

Digital Currency Push

According to the central bank’s press release, some of the eligible technologies include “new or immature” digital financial service technology. The reasons for the sandbox’s need are laid forth in a statement from the central bank.

The statement read:

“Bank of Ghana through this initiative, affirms its commitment to provide the enabling environment for innovation to promote financial inclusion and facilitate Ghana’s digitization and cash-lite agenda. With support from FSD Africa, we will engage various stakeholders including industry groups, associations and innovation hubs.”

But in the meanwhile, the central bank mentioned the BOG’s central bank digital currency (CBDC) initiative, which has the “potential of boosting innovation in digital financial service.” The CBDC or “e-cedi” has the ability to significantly strengthen the digitization of Ghana’s financial industry if it is “mainstreamed,” according to the statement.

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