Bank of Ghana Moves to Regulate Stablecoins as Governor Warns of Threat to Cedi and Monetary Control

The Bank of Ghana (BoG) has sounded a firm warning over the rapid spread of foreign-currency stablecoins, cautioning that their growing adoption among Ghanaians could weaken the Ghana cedi, disrupt capital flows, and strip the central bank of its ability to steer the economy effectively. The remarks come as Ghana moves to establish a comprehensive regulatory framework for digital assets.

What the Governor Said

Speaking at the Africa Virtual Assets Summit 2026, BoG Governor Dr Johnson Pandit Asiama acknowledged that stablecoins — digital currencies typically pegged to assets such as the US dollar — carry genuine promise for payments and cross-border settlements. However, he stressed that the benefits come with serious risks that Ghana cannot afford to ignore.

"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," Dr Asiama stated.

The concern centres on currency substitution — a phenomenon where citizens and businesses increasingly transact in a foreign currency instead of the local one. If Ghanaians begin holding and spending dollar-pegged stablecoins instead of cedis, the central bank loses a critical lever it uses to manage inflation and economic growth. This is not a distant theoretical risk; in several economies with high inflation histories, dollarisation through digital channels has accelerated faster than regulators anticipated.

Ghana's Regulatory Response

To get ahead of the challenge, the Bank of Ghana is drafting a dedicated stablecoin directive to set clear rules for how these instruments can be issued, held and used within the country. The BoG is working alongside the Securities and Exchange Commission (SEC) and the Financial Intelligence Centre (FIC) to build out a broader supervisory architecture for the entire virtual assets space.

A significant legislative milestone has already been reached. The Virtual Asset Service Providers Act, 2025 (Act 1154), which was passed earlier this year, provides the foundational legal framework for regulating crypto exchanges, wallet providers and other digital asset businesses operating in Ghana. Dr Asiama described it as a major step forward, signalling that Ghana intends to be a regulated — not a lawless — frontier in Africa's digital finance space.

Why It Matters for Ghana

Ghana has had a turbulent relationship with currency stability over the past several years. The cedi suffered significant depreciation pressures, and inflationary episodes have made many Ghanaians receptive to alternatives that appear to hold value better. It is precisely this environment that makes foreign-currency stablecoins attractive — and potentially destabilising.

If a large segment of the population shifts savings and transactions into dollar stablecoins, the demand for cedis falls, putting further downward pressure on the currency. The BoG's ability to set interest rates and manage money supply becomes less effective when a growing portion of economic activity bypasses the local currency altogether.

Beyond individual finances, the risks extend to businesses and the broader financial system. Unregulated stablecoin flows could complicate anti-money laundering efforts and obscure capital moving in and out of the country — challenges the FIC is specifically designed to counter.

At the same time, the BoG's measured tone — acknowledging the technology's benefits while pushing for guardrails — suggests Ghana is not looking to ban stablecoins outright. The goal appears to be channelling innovation in a direction that supports, rather than undermines, financial stability and confidence in the cedi.

• Watch this space: The forthcoming stablecoin directive from the BoG will be the document to scrutinise. It is expected to determine whether Ghana-issued or cedi-backed stablecoins will be permitted and under what conditions foreign-currency digital assets can circulate legally.
• For crypto users: Those already using stablecoins for remittances or savings should anticipate clearer — and potentially stricter — rules on how virtual asset service providers operate in Ghana under Act 1154.