KEY POINTS
- President Mahama identifies Solana as a catalyst for Africa’s fintech growth.
- Solana’s low transaction costs could boost cryptocurrency adoption.
- Ghana’s central bank is working on regulations and the eCedi digital currency.
Ghana’s President, John Dramani Mahama, has identified Solana, a high-performance blockchain network, as a potential catalyst for fintech growth and cryptocurrency adoption across Africa.
Through a recent social media update, Mahama stressed the need for financial inclusion throughout Africa.
He explained that Solana operates with affordable transaction fees which provides users with affordable payment and investment options.
“Financial inclusion isn’t just a need for Ghana—it’s essential for all of Africa. With its low transaction costs, Solana could be the key to driving fintech growth and enabling cryptocurrency payments and investments across the continent,” Mahama stated.
Solana, known for its fast and scalable decentralized applications, offers an edge over traditional blockchains like Bitcoin and Ethereum, which often struggle with high fees and slow transaction speeds.
Solana’s unique proof-of-history (PoH) consensus mechanism enables thousands of transactions per second, making it an attractive option for financial services and payments in Africa.
Solana’s role in Africa’s digital revolution
Mahama’s endorsement of Solana aligns with his broader vision of a digital transformation for Africa.
Speaking in an accompanying video, he discussed how technological advancements could help the continent leapfrog traditional development models.
“The Fourth Industrial Revolution presents a golden opportunity for Africa to bypass traditional development hurdles.
We don’t need to reinvent the wheel. Digital transformation can drive financial inclusion, improve public service delivery, and create new opportunities for our people,” he said.
Mahama demanded more investments to develop digital infrastructure as well as expansion of internet connectivity and fintech solutions.
According to Graphic Online, he stressed the need for research and development to bridge the digital divide and enhance Africa’s competitiveness in the global market.
His comments come at a time when Ghana is working to regulate its cryptocurrency market.
The Bank of Ghana (BoG) established draft regulations in August last year to formalize oversight for digital assets.
Contributing entities must fulfill multiple requirements under these regulations that cover both Virtual Asset Service Provider registration (VASPs), anti-money laundering protections and consumer safeguard systems.
Balancing innovation with regulatory oversight
Mahama supports blockchain technology yet authorities remain cautious about cryptos because of their price instability.
Investors must be aware of the steep price changes digital assets display.
In addition to regulating private cryptocurrencies, the BoG is developing its own central bank digital currency (CBDC), known as the eCedi.
The eCedi launched its first announcement in 2021 to enable Ghana’s digital financial operations in a safe and efficient manner.
The remarks from Mahama indicate rising interest among African nations about blockchain technology applications for economic expansion.
His advocacy of Solana demonstrates his approach to advance innovation together with proper regulatory oversight.
As Ghana and other African nations explore the potential of cryptocurrencies, the balance between innovation and security will be key to shaping the future of fintech on the continent.
