BoG warns foreign-currency stablecoins could threaten monetary sovereignty

The Bank of Ghana has cautioned that the increasing use of foreign-currency stablecoins may jeopardize the nation's monetary independence and diminish its capacity to implement monetary policy. Bank Governor Dr Johnson Pandit Asiama highlighted the potential for digital assets to promote the use of foreign currencies over the Ghana cedi, disrupt capital flows, and pose risks to financial stability.

Speaking at the Africa Virtual Assets Summit 2026, Dr Asiama recognized the advantages of stablecoins for payments and settlements, but cautioned about the consequences of their growing adoption, especially those denominated in foreign currencies. He emphasized that "while stablecoins may offer benefits for payments and settlement, their increasing use, especially those denominated in foreign currencies, could impact monetary sovereignty, currency substitution, capital flows, and the effectiveness of monetary policy."

In response to these concerns, the Bank of Ghana is in the process of crafting a stablecoin directive to govern sector activities. The Bank is also collaborating with the Securities and Exchange Commission and the Financial Intelligence Centre to devise regulatory measures and supervisory frameworks for virtual assets. Dr Asiama described the enactment of the Virtual Asset Service Providers Act 2025 (Act 1154) as a significant step towards regulating virtual assets in Ghana.

He emphasized that the expansion of digital finance must be accompanied by protective measures to maintain monetary and financial stability and the credibility of the Ghana cedi.