Former BoG Head of Fintech Advocates Responsible Innovation and Regulatory Collaboration in Africa’s Digital Money Transition
Former Head of Fintech at the Bank of Ghana, Kwame Oppong, has underscored the need for balance between innovation and regulation as Africa deepens its exploration of central bank digital currencies (CBDCs), stablecoins, and blockchain-based payment systems.
Speaking during a panel discussion on the topic “The Unfiltered Story of Building Africa’s Digital Money Future,” Mr. Oppong highlighted the transformative potential of blockchain technology in driving low-cost, efficient, and fast transactions across the continent. “There are some networks that can settle up to 50,000 transactions for under $10, with settlement finality in minutes,” he observed, noting that stablecoins, in particular, present a compelling use case for emerging markets by improving transaction efficiency and financial inclusion.
However, he cautioned that unregulated growth of digital assets could pose macroeconomic and monetary policy risks. “An unregulated channel could easily increase the money supply, and if not managed, the inflationary impact could dislocate monetary policy efforts,” he warned, urging policymakers to integrate virtual assets into existing economic frameworks.
Mr. Oppong stressed that collaboration between regulators and innovators is critical to achieving sustainable progress in the digital finance ecosystem. He cited Ghana’s mobile money experience as evidence that cooperative engagement yields lasting success.
Touching on the need for responsible onboarding and consumer protection, he echoed sentiments by Ethereum founder Vitalik Buterin, emphasising that effective Know-Your-Customer (KYC), Anti-Money Laundering (AML), and Countering the Financing of Terrorism (CFT) frameworks remain essential. “Proper onboarding rules ensure clean consumer bases, protect users, and prevent the financial stability risks seen during the FTX collapse,” he added.
Mr. Oppong concluded by calling for a unified African approach to digital asset settlement and tokenisation, asserting that regional collaboration could enhance intra-African payments and economic integration without reliance on external systems.
