Entering Cryptocurrency in Ghanaian Financial Law – Member of Parliament for Juabeng

Ms. Ama Pomaa Boateng, Member of Parliament for Juabeng, Member of the New Patriotic Party (NPP)

Mrs. Ama Pomaa Boateng, Member of Parliament of the New Patriotic Party (MP) of Juabeng, has proposed to the Parliament to urgently adopt a law aimed at integrating cryptocurrency into Ghana's financial sector..

She said it was urgent that members of the chamber broaden their knowledge and equip themselves with pioneering legislation recognizing blockchain technology and virtual currency, which had become a game changer.

In a statement to the Parliament yesterday, the MP said that virtual currency would bring several benefits to the economy and change the way Ghanaians have made financial transactions and banking transactions.

Cryptocurrency

Juabeng said that cryptocurrency is a wholly virtual currency that uses blockchain technology and cryptography for security, making counterfeiting difficult.

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According to her, in the absence of legislation, the government could create a registry and possibly an exchange platform for cryptocurrency providers to allow the government to oversee these virtual currency activities. and create a stable regulatory environment where it could thrive.

"The cryptocurrency market is moving at a tremendous pace, but neither the government nor the Bank of Ghana back he. Governments use central banks to issue or destroy money by using monetary policy to exert economic influence, "she said.

Ms. Boateng said the government could play a leading role in regulating cryptocurrency, while Parliament was following the process of enacting a law for even.

Payment systems

The MP said the presence of cryptocurrency in the economy had revolutionized local and international payment systems and that Ghana needed to pay attention.

She added that the best-known example was Bitcoin, which has become a decentralized global payment system in digital currency that operates without a central bank or single administrator.

"Mr. Speaker, cryptocurrency is created in cyberspace, where" miners "or users use the power of their computers to solve complex algorithms for transaction verification. Their reward is a payment in cyber-currency, stored digitally and pbaded between buyers and sellers without the need of an intermediary like our central bank, "she said.

Exchange platforms

Ms. Boateng said that a growing number of services and merchants were accepting cryptocurrency around the world. In Ghana, there were online cryptocurrency trading platforms and solutions for mobile money and currency traders.

The MP pointed out that the fact that the banking sector is operated with the help of the Internet and easy transaction features in an international market is currently a significant risk, and that the use of virtual currencies dispels the government's grip on the economy.

In her view, the problem of non-compliance was also related to the nature of cryptocurrencies and cryptographic badets, as users were anonymous and the collection of data on digital currency users became a challenge.

Economy

Ms. Boateng said that cryptocurrency could offer several benefits to the economy if it was managed properly with the right laws to back it up.

Dr. Mark Assibey-Yeboah, Chair of Parliament's Finance Committee and Member of Parliament for New South Juaben, referred to a statement issued by the Bank of Ghana (BoG) in January 2018 that Digital currency activities were currently licensed under the Payment System Act 2003 (Law 662).

He therefore stated that the BoG therefore strongly encouraged the public to only deal with institutions approved by the bank to ensure that such transactions fall within its regulatory jurisdiction.

In agreeing with the BoG, he argued that there was no central control of cryptocurrency, his difficult regulation.

"It's dangerous and you can lose all your money in a day. Until we can control how to regulate cryptocurrency in our country, my simple advice is to stay out of the way, "said Dr. Assibey-Yeboah.