Bank Of Ghana Launches Regulatory Sandbox

The Bank of Ghana has launched a regulatory and innovation sandbox pilot for financial sector innovators. The apex bank launched this in partnership with EMTECH Service LLC on Thursday, February 25, 2021.

The sandbox is meant to be a supportive and controlled policy environment that enables financial services companies to test innovative products, services, and business models. With regulators closely supervising, there should be an understanding between the innovator and the regulator before the products hit the market.

The BoG states that the sandbox will be available to banks, specialized deposit-taking institutions, payment service providers, and even unregulated entities and persons that meet the sandbox requirements.

The BoG says it would give preference to products and services leveraging blockchain technology, remittance products, crowdfunding products, products and services targeting women financial inclusion among others.

The financial services sector has been experiencing innovation, but it has a high entry barrier. The sandbox presents an opportunity for young fintech companies to test new products under the supervision of the regulator.

As we have seen before, innovators operating within a regulatory grey area could witness unexpected clampdowns, but this sandbox creates room for engagement and understanding.

Source: Techpoint