BoG introduces its SandBox programme for start-ups

The Bank of Ghana on Friday, August 19, 2022, launched its Regulatory and Innovation SandBox Programme. The Bank in a statement confirmed that following its official launch of the SandBox programme is ready to accept applications to regulate blockchain-based businesses, particularly for start-ups, before their roll-out and integration into the larger financial system. This followed the successful piloting of the programme.

The Central Bank in the statement said that the SandBox programme is line with its commitment to continuously evolve a conducive regulatory environment that fosters innovation, financial inclusion and financial stability.

According to the Central Bank, the decision to accept blockchain-based businesses into the regulatory programme is due to the significant promise the technology holds in mainstreaming financial service delivery.

“On the other end of the digitization spectrum, blockchain appears to hold significant promise for use in mainstreaming financial service delivery though the technology is yet to mature.

“Nevertheless, the Bank of Ghana took a bold decision and admitted blockchain solution into the regulatory and innovation SandBox programme,” stated the Central Bank.

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

The SandBox Pilot programme provides a supportive and controlled policy environment that enables firms particularly FinTechs to test innovative products, services and business models under the supervision of a regulator, to assess the usefulness, viability and safety of innovations in the financial services industry.

The sandbox according to the BoG, is available to banks, specialised deposit-taking institutions and payment service providers including dedicated electronic money issuers as well as unregulated entities and persons that have innovations that meet the sandbox requirements.