Despite the highly polarized debate over cryptocurrency investment in Ghana, financial analyst Joe Jackson believes the time is long overdue for the Bank of Ghana (BoG) to move swiftly in establishing regulatory frameworks to govern its use in the country.
The Chief Executive Officer of Dalex Finance reveals that although he is currently not engaging in crypto trade, he did so as far back as 2005, which is about 2 decades ago.
From his experience, cryptocurrency is a financial reality that cannot be sidelined, especially as Ghana ranks as the fifth-largest crypto recipient in Africa.
Although other financial analysts, including Dr. Richmond Atuahene, remain unconvinced about the timing, justifying that the country does not have the systems currently to regulate such trade.
Dr. Atuahene believes Ghana’s financial system is already bedevilled with so many issues which require attention, and hence, until such issues are addressed, the Bank of Ghana has no business venturing into a risky area such as crypto trade.
“We have to be very, very careful when we’re moving into areas that are unregulated. Because you can burn your fingers as easily as anything,” he warned.
But Joe Jackson says the country must face the reality that cryptocurrency has come to stay as an alternative means of investment which requires regulations.
“It is real. If you take all the countries in Africa, Ghana was the fifth-largest recipient of crypto. And that you cannot throw away. And it’s better for it to be regulated,” he emphasized.
He added, “It’s better for us to grow in understanding and be able to utilise this as one of our alternative means, rather than to say we are not ready yet. I think we are ready. We are more than ready. Listen, we can’t avoid crypto. Crypto is going to be one of the alternatives.”
Acknowledging the fears of the sceptics and the volatile nature of cryptocurrencies, the CEO of Dalex Finance cautioned that crypto should not be seen as a guaranteed path to wealth, warning of its associated risks. However, he believes that pretending Ghana is not ready is a bigger risk.
He is therefore throwing his support behind the BoG’s intention to issue formal rules to govern crypto use, describing it as a necessary and strategic step to integrate digital currencies into Ghana’s evolving financial ecosystem.
While crypto may offer some resistance to currency debasement and attract investors seeking alternatives, Jackson stressed the importance of regulation to ensure transparency, consumer protection, and financial stability.
“It’s good that the central bank has clearly indicated that they will come out with the rules that will govern crypto. But let’s also be clear. It is another currency. It may have certain advantages that will make it less likely to be debased like other currencies,” he indicated.
He continued, “It also has certain deficiencies that you have to look up to. So let nobody think crypto is going to be some silver bullet for investment, where you invest and you get fantastic returns. There are going to be risks there.”
The global adoption of digital currencies is rapidly accelerating. Amidst adoption and the debate, Joe Jackson advocates for a broader push for Africa’s financial institutions to proactively embrace and manage the digital finance wave rather than be overwhelmed by it.
