Foreign currency stablecoins pose risks to cedi stability, monetary policy – BoG

Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has warned that the growing adoption of stablecoins denominated in foreign currencies could pose risks to Ghana’s monetary sovereignty, currency stability and monetary policy effectiveness.

He said although stablecoins could improve payment and settlement systems, their increasing use, particularly those linked to foreign currencies, requires careful regulatory attention.

Speaking at the Africa Virtual Assets Summit 2026 in Accra on Monday, November 2, Dr. Asiama said digital financial innovation must strengthen rather than undermine confidence in the Ghana cedi.

“Stablecoins may offer benefits for payments and settlement, but their growing adoption, particularly those denominated in foreign currencies, could have implications for monetary sovereignty, currency substitution, capital flows and the effectiveness of monetary policy,” he said.

He stressed that the Bank of Ghana’s responsibility for maintaining price stability and safeguarding the soundness of the financial system remained critical despite technological changes.

“As the central bank, the Bank of Ghana’s responsibility for price stability and the soundness of the financial system does not diminish with technological change; it becomes more important,” he stated.

Dr. Asiama added that the country’s approach to regulating virtual assets would not involve imposing unnecessary restrictions on the industry, arguing that different activities presented different levels of risk.

“This does not call for heavy-handed regulation. Not all virtual asset activities present the same risks, and our approach must reflect their nature, scale and complexity,” he said.

He noted that consumer and investor protection, safeguarding customer assets and maintaining financial integrity were essential to building confidence in the emerging digital asset ecosystem.

The Governor disclosed that the Bank of Ghana was developing a Stablecoin Directive to establish clear requirements for stablecoin activities in Ghana and provide certainty on permitted operations.

The Bank is also collaborating with the Securities and Exchange Commission (SEC) and the Financial Intelligence Centre to develop regulatory instruments and supervisory arrangements for the sector.

Ghana’s regulatory framework received a major boost with the passage of the Virtual Asset Service Providers Act, 2025 (Act 1154), which provides for coordinated oversight of virtual asset activities by the Bank of Ghana and the SEC.

Stablecoins are digital tokens designed to maintain a stable value, commonly through links to currencies such as the US dollar. They are increasingly used for digital payments, transfers and settlements.

However, the growing use of foreign-currency-backed stablecoins could increase reliance on currencies other than the domestic currency, making their regulation an important consideration for countries seeking to protect monetary policy independence.

Dr. Asiama said Ghana must build a digital financial ecosystem that encourages innovation while preserving confidence in the cedi and the wider financial system.