In today’s ever-evolving landscape of financial technology, it’s easy to get swept up in the whirlwind of innovation. However, behind the scenes, regulators are working diligently to ensure that these technological advancements do not outpace the safety nets put in place to protect consumers and maintain market integrity. A recent development in this field involves MobileMoney Limited, the company that operates MTN MoMo. The central bank released a statement, noting, “MobileMoney Limited has not been authorised to carry out international money transfer services.” This raises a pertinent question: How do we balance innovation with regulation?
Media reports misrepresent regulatory status
In response to a flurry of media reports, the Bank of Ghana clarified the situation. These reports erroneously suggested that MTN Ghana had been given the green light for international remittance operations. The central bank stated that such interpretations led to an uproar of confusion. Have you ever wondered how quickly misinformation can spread in today’s digital age?
In truth, the only cross-border initiative under the Bank of Ghana’s careful regulatory oversight is BrijX. This platform, which focuses on business-to-business (B2B) currency exchange, was developed by Brij Fintech Ghana, a licensed payment service provider (PSP).
BrijX pilot programme underway
Operating within the bank’s regulatory sandbox, BrijX provides a fascinating service. It enables direct currency swaps between the Ghanaian Cedi and the Nigerian Naira without engaging foreign exchange markets or the physical transfer of funds. It’s intriguing to consider how such innovations are reshaping the financial landscape.
Launching its pilot phase in February 2025, the platform initially opened its doors to MTN MoMo customers. Plans are afoot to later include participants from G-Money. This staggered approach raises another interesting point: is it better to slowly expand such initiatives rather than go all-out from the start?
Strict oversight and compliance measures in place
The Bank of Ghana reassures the public that stringent regulatory conditions oversee the BrijX pilot. These include transaction limits, a fixed number of participants, and stringent adherence to anti-money laundering (AML) and know your customer (KYC) standards. It prompts us to ask, rather philosophically: In our quest for innovation, at what cost do we sacrifice security?
The bank’s statement included a particularly striking quote: “The Bank will assess the outcomes of the pilot to determine future policy directions regarding cross-border transactions.” This underscores a thoughtful approach to progressing one step at a time, with constant analysis and evaluation.
MTN MoMo remains domestic-only—for now
It’s vital to underscore that the MobileMoney platform managed by MTN Ghana stays constrained to domestic transactions, having not been given authorization for international remittances. This decision, backed by what some might call a ‘conservative approach,’ serves as both a cautionary tale and a reminder of the regulatory underpinnings that guide these advancements.
In closing, the central bank reiterated its unwavering commitment to promoting secure, cost-efficient, and effective cross-border payment systems in Africa. This is done with an unwavering focus on preserving the financial system through responsible innovation. Every advancement in the fintech domain serves as an epiphany moment, inviting reflections on safety, regulation, and progress. As Emma Lazarus once said, “Until we are all free, we are all bound together by fate.” While talking about a different context, this quote captures the essence of regulated progress, where freedom to innovate must be aligned with regulatory responsibility.
Edited By Ali Musa, Axadle Times International–Monitoring.
