Bank of Ghana warns Ghanaians against cryptocurrency trading

• The Bank of Ghana Governor has said the cryptocurrencies used in trading online are not regulated

• It is for this reason that BoG is looking at having a digital currency for Ghanaians to trade with on the stock market

• The digital currency, according to Dr Ernest Addison is backed

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The Bank of Ghana Governor, Dr Ernest Addison, has cautioned Ghanaians to desist from trading on the stock market with cryptocurrencies.

He stated that this high risk investment is not regulated by either the central bank or the Securities and Exchange Commission (SEC).

Currently, there has been sharp changes in the valuation of some of the cryptocurrencies; especially the famous bitcoin and the dogecoin.

"The cryptocurrency I think we are all aware of has been going on and we have said that this is not a regulated activity in the Bank of Ghana so we warn the public about engaging the cryptocurrency trade. You have seen the sharp changes in valuation of some of these coins," Dr Addison said.

Dr Addison has however noted that his outfit is looking forward to having a digital currency for the transaction of businesses online.

He noted that the e-currency is backed by the state.

The BoG Governor said, "The basic function of currencies is for them to be used effectively as a medium of exchange or even of a unit of account so when you have a currency whose value is so unstable, you really cannot use it effectively to meet any of the standard functions of money and this is why I think there is a lot more emphasis on looking at digital money which is backed by the state."

He pointed this out at the 100th Monetary Policy Committee (MPC) conference on Monday, May 31, 2021 in Accra.