Ghana’s central bank has announced the launch of a sandbox test to promote the growth of blockchain-based and financial services.
A sandbox has been developed to help Ghana’s financial services innovate.
In a recent press release, the central bank announced this development.
The sandbox, according to the report, would cover a wide range of financial services developments and boost the country’s financial inclusion. In addition, the bank is looking for new merchant payment options for small and medium-sized enterprises, as well as remittance and crowdfunding products.
The apex bank also announced that it will make the sandbox accessible to banks, depositories, and unregulated financial entities and individuals who meet the requirements.
The sandbox would be open to banks, specialized deposit-taking institutions, and payment service providers, including dedicated electronic money issuers, as well as unregulated organizations and individuals with technologies that meet the sandbox’s criteria, according to the release.
The Bank of Ghana also claimed that the project is one of the ways it expects to close the country’s financial inclusion gap. The bank also indicated that organizations with creative ideas that meet the criteria may apply for evaluation.
The sandbox software was created in partnership with the Bank of Ghana by fintech company EMTECH.
In 2020, the two parties agreed to form a collaboration to produce goods that would support the financial sector. EMTECH has also teamed up with Microsoft to create a compliant tool that will help central banks deal with regulatory issues. The platform can also be used by banks to safely test central bank digital currencies (CBDC).
Ghana is a burgeoning crypto-hub
Ghana is a developing cryptocurrency center in Africa, with a large number of young people interested in digital currencies. The government has also established a legal structure for cryptocurrencies and exchanges to be controlled. As it continues to extend its current financial infrastructure, it has also sought to attract blockchain companies.
In 2019, the Bank of Ghana hinted that a CBDC may be issued in the future. However, no concrete proposals for this construction have been announced. The sandbox project is a good idea from the central bank, and it will likely help the country’s fintech platforms expand.