Following its official launch of the Regulatory SandBox, the Bank of Ghana will be accepting applications to regulate blockchain-based businesses by start-ups within the sandbox before their roll-out and integration into the larger financial system.
The Central Bank on Friday, August 19, 2022, launched its Regulatory and Innovation SandBox following the successful piloting of the programme.
In a statement, the Central Bank said the SandBox programme is line with its commitment to continuously evolve a conducive regulatory environment that fosters innovation, financial inclusion and financial stability.
According to the Central Bank, the decision to accept blockchain-based businesses into the regulatory programme is due to the significant promise the technology holds in mainstreaming financial service delivery.
“On the other end of the digitization spectrum, blockchain appears to hold significant promise for use in mainstreaming financial service delivery though the technology is yet to mature.
“Nevertheless, the Bank of Ghana took a bold decision and admitted blockchain solution into the regulatory and innovation SandBox programme,” stated the Central Bank.
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
The SandBox Pilot programme provides a supportive and controlled policy environment that enables firms particularly FinTechs to test innovative products, services and business models under the supervision of a regulator, to assess the usefulness, viability and safety of innovations in the financial services industry.
Also Read: Innovations in Regulatory Sandbox are fully protected – BoG
Bank of Ghana launches Regulatory Sandbox after successful pilot
The sandbox according to the BoG, is available to banks, specialised 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.
According to the Central Bank, innovations eligible for the sandbox environment will have to satisfy any of the following broad categories:
- The New digital business models not covered current regulation;
- New and immature digital financial service technology;
- Innovative and disruptive digital financial service products that have the potential of addressing a persistent financial inclusion challenge