The BoG mentioned its CBDC initiative, the e-Cedi, which can foster innovation in digital financial services and enhance their digitization. Sayed Shah Sadaat said the Central Bank of Afghanistan had required them to prevent the trade of allegedly fraudulent cryptocurrencies like Bitcoin.
The Bank of Ghana (BoG) recently announced it would open an Innovation and Regulatory Sandbox to support innovation, financial inclusion, and economic security. That would allow the financial institution to understand innovative products better, thanks to possible improvements to legal requirements.
All financial institutions in Ghana under the jurisdiction of the Financial Services Regulatory Commission must use the sandbox. The BoG created it along with Emtech Solutions Inc. to help financial services companies with no license whose innovative products comply with regulations.
Ghana Seeks to Boost the Use of Cryptocurrencies
According to the BoG, some eligible technologies include new or immature digital financial services technology. A statement by the central bank establishes the reasons for creating the sandbox.
The BoG claimed it seeks to provide an innovation-friendly environment to promote financial inclusion and facilitate the cash-lite and digitization agenda. The financial institution explained that the support of FSD Africa would allow it to engage stakeholders like industry groups, associations, and innovation hubs.
However, the central bank also mentioned its CBDC initiative, which can foster innovation in digital financial services. According to the statement, the e-Cedi can significantly enhance the integrated digitization of the financial sector of Ghana.
The approval of a blockchain solution during the sandbox pilot shows the commitment to innovation of the BoG BOG regarding that technology.
Meanwhile, Afghanistan’s Taliban Government Targets the Cryptocurrency Industry
According to Bloomberg, the Taliban government of Afghanistan target those dealing with cryptocurrencies, clamping down on traders who operate despite suspensions. One month after the central bank of the Middle-Eastern country prohibited crypto assets, the authorities began to take vigorous action.
Sayed Shah Sadaat, head of criminal investigations for the Herat Police, said the central bank had given them an order. They must prevent exchanges, individuals, and businesspeople from trading allegedly fraudulent cryptocurrencies like Bitcoin.
Sanctions Lead to the Need for the Use of Cryptocurrencies
Four of the six cryptocurrency exchanges in Afghanistan are in Herat, the third-largest city in the country. Sadaat said that the police detained 13 people and closed 20 crypto businesses.
Before the Bank of Afghanistan banned cryptocurrencies, there was a demand for cryptocurrencies, especially stablecoins. People sought them as a secure mechanism to store capital and transfer funds domestically or internationally. Stablecoins are digital currencies to hold a stable value against fiat currencies like the US dollar (USD) and the euro (EUR).
In the 1990s, the United States imposed severe economic sanctions against Afghanistan. After the Taliban recaptured Kabul and returned to power, Biden introduced further restrictions. Then its administration seized nearly USD 7 billion in Afghan treasury assets from the New York Federal Reserve Bank.
By Alexander Salazar
