Cryptocurrency in Ghana - a payment option?

The Bank of Ghana has taken notice of recent developments in the use, holding, and trading of
virtual or digital currencies (also known as cryptocurrencies), such as Bitcoin in Ghana. The
Bank of Ghana wishes to notify the general public that these activities in digital currency are
currently not licensed under the Payments System Act 2003 (Act 662).

This was a popular statement revealed by the Bank of Ghana in 2018 concerning the use of
cryptocurrencies in the country. Notwithstanding, a number of Ghanaians are into the business of
selling and buying cryptos, mainly Bitcoin although it is yet to be made legal.

So what is cryptocurrency? Cryptocurrency is basically a digital currency that can be used for
transactions like you would with physical legal tender like Ghana cedi and functions based on a
technology called blockchain. Just like you have a bank account to keep your money, there are
digital wallets to keep your digital money, just like mobile money.

There have been a number of disruptive technologies in the finance sector of the country. A
major one, mobile money. Mobile money is undoubtedly the most popular medium or mode of
transaction in the country which has forced many banks to incorporate it into their system. Isn’t
the money stored and transferred digitally? So how different is bitcoin from Momo? Should
Ghana adopt it as a mode of payment and transaction?

One thing to note about cryptocurrency is the fact that it is decentralised. Decentralised in the
sense that it is not regulated or controlled by governments or any form of authority due to their
structure. All the transactions that go on, are stored in the blockchain, in this system the user has
more control. So you might be wondering, is it safe? And our question will also be, is saving
money in the bank safe?

There are a number of exchange platforms in Ghana as well as escrow and Peer-to-peer
exchanges for crypto. You can actually sell bitcoin for Ghana cedi. Transactions in the
blockchain undergo a number of confirmations. When a transaction has been included in the
blockchain, it is referred to as a confirmation and each additional block is also another
confirmation. Most platforms require for up to three confirmations before the transaction is
considered final and the buyer or seller can receive it. Bitcoin transactions take approximately 20
minutes for 2-3 confirmations on the blockchain.

Blockchain technology is very fast, secure and reliable. The very elements needed for any
transaction that has to be made. Investing in cryptos is very profitable and even better, trading
them. In certain parts of the world, there are Bitcoin ATMs that operate to make exchanging
bitcoin easier and very convenient. We have embraced virtual money; is it time Ghana considers
cryptocurrency? In Africa, cryptocurrency is very popular and highly purchased in countries like
Kenya, Nigeria and South Africa.

Cryptocurrency is going to change the way the world of finances operates. The use of Bitcoin,
the popular and first crypto is gradually rising in many parts of Africa and it is only a matter of
time. An economic revolution has been set in motion. Sending money to other countries can be
very costly due to the fees charged but with bitcoin, transaction fees are cheap escaping high
bank fees and the stress of having to convert to other international currencies.

Is it time we adopted cryptocurrency as a mode of payment in Ghana?