The Fintech and Innovation Office (FIO), as disclosed by the Bank of Ghana’s (BoG) 2020 annual report, is committed to channel its efforts to help foster financial technology (Fintech) innovations.
FIO is dedicated to nurturing a vibrant, inclusive, safe, and efficient digital financial services ecosystem, the BoG stated.
“The FIO also develops policies to promote Fintech innovation and interoperability in Ghana”.
Bank of Ghana
In order to “nurture Fintechs and promote responsible digital financial service innovations”, an innovative and regulatory sandbox project was launched in 2020.
The project, as stated in the report, is tailored to fashion with the BoG’s financial sector digitalisation agenda.
This, the report stated, is “expected to further assist the development of policies to enhance financial inclusion and support innovations within the Fintech ecosystem”.
“The restrictions associated with the pandemic provided additional impetus to promote efficient and inclusive financial services, especially in remote payment systems, through the adoption of technology.”
Bank of Ghana
The FIO was established by the BoG in 2020 to champion the Bank’s cash-lite, e-payments and digitalisation agenda.
As part of the FIO’s mandate, it is “responsible for the licensing and supervision of Dedicated Electronic Money Issuers (DEMIs) and the Payment Service Providers (PSPs)”.
The Financial Technology Service Providers (FTSP), and other emerging forms of payments delivered by non-bank entities, are also under the FIO’s control.
Central Bank Digital Currency
Recent developments within the financial digital ecosystem have witnessed an upsurge in creation of central bank digital currencies (CBDCs) across the globe.
According to the report from the BoG, the Bank has taken strategic steps to “explore the feasibility and appropriateness of a Central Bank Digital Currency (CBDC) to the Ghanaian economy”.
The Bank remains steadfast in promoting digital payment innovations and piloting initiatives like the CBDC, the report unveiled.
Consequently, the first phase of the possible introduction of a CBDC in Ghana is the design of the electronic money, e-Cedi, which will be piloted before full implementation.
“This will facilitate electronic payments by households and businesses, using digital money issued by the Bank.”
Bank of Ghana
Within Africa, Ghana and Nigeria are in the league of economies which have taken the initiative to chart this unchartered territory of digital currencies.
Advanced economies such as the People’s Republic of China, is within an advanced stage of rolling out its CBDC, whereas economies like the European Union (EU) and the United States are now exploring the technicalities of adopting the CBDCs.
In a report from the International Monetary Fund (IMF), it admonished economies to consider CBDCs to help reduce the activities of the crypto asset operators.
Economies such as the People’s Republic of China and Nigeria have already ‘taken the bull by the horn’ to terminate all crypto asset operations within their economies.
Existing digital payments’ performance
In view the recent data from the Bank of Ghana, digital payments such as E-zwich saw it total transactions value grew by 22.94% to GH¢710.7 million as of June 2021, as compares with the GH¢578.1 million recorded in the same period last year.
Similarly, Gh-link total transactions value grew by 12.20% to GH¢33.1 million as of June 2021 as compared to GH¢29.5 million recorded in June 2020.
Ghipss Instant Pay (GIP) experienced an outstanding performance, as its total value of transactions grew by 254.31% to GH¢2,518.8 million as of June 2021 from the GH¢710.9 million recorded in June 2020.
Also, the total value of mobile money transactions grew by 96.69% to GH¢89.1 billion as of June 2021, as compared to the GH¢45.3 billion recorded in the same period last year.
Meanwhile, mobile money interoperability recorded a stunning performance to grow by 410.90% to GH¢1,640.0 million as of June 2021 from GH¢321.0 million recorded in June 2020.
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