Sino-Ghana Collaboration on Cryptocurrency: Practices and Implications

Abstract

Abstract The proliferation of digital transformation through the Internet of Things has sparked the emergence of cryptocurrencies and elicited varied perspectives in both developed and developing countries. Ghana has imposed restrictions on the use and trading of cryptocurrencies, prompting ambiguities, uncertainties, and implications beyond the cryptocurrency world. Despite this, Ghana positions itself as a major player in the digital transformation of the African continent, both in mobile payment solutions and cryptocurrency. Given the long-standing Sino-Africa relationship, we examine the potential of a Sino-Ghanaian collaboration to aid Ghana in the development of its cryptocurrency future. Offering a unique opportunity to explore a development partnership through digital transformation in win–win cooperation. The Bank of Ghana Sandbox has enabled the provision of a digital wallet to facilitate access to both traditional and global digital currencies. This has given access to the global market and financial inclusion, enabling fintech startups to leverage the African cultural heritage by developing diverse art forms to be sold as Non-Fungible Tokens, Play-to-Earn (P2E) game offerings to Ghanaians. The implications of access to global markets, financial inclusion, and taxation have also been discussed. China is an epitome and a major propagator of digital transformation as a developing country and has eclipsed Ghana in terms of modern-day financial technologies and development. By drawing a nexus between cryptocurrency/blockchain, digital transformation and financial inclusion, an important empirical insight is provided into an interesting focal point on Sino-African collaboration in advancing cryptocurrency development in a new emerging digital economy.