The Bank of Ghana‘s Director of Fintech and Innovation, Mr. Kwame Oppong, has urged leaders in the fintech and cryptocurrency industries to be steadfast in creating secure and resilient environments to protect consumers’ interests.
According to him, a new business model product and mode of interaction had emerged that presented a significant challenge to governance regulation, consumer protection, and financial integrity. This presented a huge opportunity for affordable digital delivery of financial services to enhance financial inclusion.
Because of this, the Bank of Ghana adopted changes to foster innovation in the financial services sector without jeopardizing the stability of the financial system, which is protected by the Payment and Services Act of 2019.
Mr Oppong made the call when he addressed about 400 Fintech and Crypto Industry leaders from across Africa at a two-day Africa Money and Decentralised Finance (DeFi) Summit – West Africa edition in Accra.
He noted that Act 987 and other related notices issued by the Bank of Ghana had non-traditional entities such as Fintech to be licensed to provide various digital financial services under a proportionate and risk-based licensing regime.
“The elevations of these team players are positively disrupting the financial services industry and generating competition while encouraging strategic partnerships among these banks and financial technology providers,” he stated.
Mr Oppong said immense benefits had been reaped from using the regulatory environment provided by the Bank of Ghana, resulting in phenomenal increases in financial inclusion from 58 percent in 2017 to 68 percent in 2021 and that this was noteworthy.
He said since the Fintech Innovation Office was established in 2020 at the Bank of Ghana, which was one of the few such outfits globally among central banks to regulate and supervise, a total of 47 payment service providers and mobile money operators, both Ghanaians and foreign, were approved across various licensing categories to provide payment services.
“The interest of the investors both local and international continues to increase on the account of the favorable regulatory regime and the abundance of opportunities. Similarly, the bank is noted for its open-door policy and constructive engagement with industry stakeholders, prospective service providers, and innovators.”
The Director said considerable resources have been invested in studying and monitoring the development of virtual assets and similar products including decentralized finance applications, and non-fund road tokens, among others.
“The Ghanaian ecosystem is still an upcoming frontier market and therefore it takes these studies and findings seriously. Our regulatory stance is in line with our mandate to ensure the financial stability of which consumer protection and financial integrity are an essential component,” he stated.
Mr Oppong said: “To this end, the Bank of Ghana would continue to monitor development and implement measures to forestall any risk in the ecosystem in collaboration with other regulators and stakeholders where necessary.
“Any regulation issued will be in line with our quest to promote safe, sustainable, and inclusive innovation that kindle the confidence in the ecosystem, and I must emphasize that consumer trust is of utmost importance to any financial service industry and in this case a key ingredient to achieving our financial inclusion goals.”
Mr Andrew Fassnidge, Founder of Africa Tech Summit Kigali and London, said the purpose of the summit was to discuss and connect people to do business and was attended by key stakeholders like startup ventures, banking regulators, and investors.
The expectation was to see the growth of crypto across Africa and a new wave of DeFi to drive business and investment.
Summit Four hundred Fintech and Crypto Industry leaders from across Africa would converge in Accra from September 27-28, 2022, at the Africa Money and Decentralised Finance (DeFi) Summit – West Africa edition.
The leading business Summit would connect 400 plus delegates, 150 plus companies, and 50 plus speakers who would cover topics via panel sessions, keynotes, and fireside chats, plus multiple networking events, masterclass sessions, and a sold-out exhibition.
A statement copied to the Ghana News Agency by Andrew Fassnidge, Founder of Africa Tech Summit said: “We are delighted to be hosting the West African edition of Africa Money and DeFi Summit in Accra, showcasing fintech leaders, crypto innovators, new rising ventures, and investment opportunities across the region.
“The growth of crypto across Africa continues and a new wave of DeFi is growing, so it’s exciting times in the digital finance space for driving business and investment forward.”
The Africa Money and Summit West Africa is a leading African fintech, decentralised finance, mobile money, and the crypto event brought by curators of the Africa Tech Summit series and provides insight and networking within the Pan-African Fintech, DeFi, and Crypto ecosystem.