BoG must regulate Mobile Money transactions – Cal Bank MD

Managing Director for Cal Bank, Dr. Frank Adu has said that it is about time the Central Bank took over the regulations of Mobile Money transactions in the country. According to him, mobile money transactions control over 60% of money in circulation yet it is not under the control of the Bank of Ghana.

He said, the telcos have not been forthcoming with collaboration, there has been very little co-operation on the side of the telecommunication companies but that notwithstanding, Mobile Money has come to stay and must be regulated.

“About 60% of money in circulation is in mobile money and the first call of the Central Bank is to manage and protect the currency of the Republic of Ghana, shouldn’t Mobile Money transactions settle at the Bank of Ghana, why should Bank of Ghana allow the regulations of Mobile Money settle at telecommunication companies, when they control 60% of the money in circulation” he quizzed.

Dr. Adu said, even though banks collectively have 20 billion cedis in Mobile Money, they still have to provide primary reserve for mobile money, he quizzed that, why can’t the banks be allowed to use their money in mobile money as part of their cash reserve at the Central Bank adding that “I do not think that as a financial sector, from the Central Bank down, we’ve got hold over the whole picture and all the doors connected”

He said, it is as if, the Central Bank wants the “Monster” Mobile Money to grow, because Crypto currency too is on the rise and when will the Central Bank take hold of it and not leave the regulations of money in the country in the hands of other companies.

Dr. Frank Adu was speaking at the 2018 Ghana Finance Week on the theme “ Achieving the UN sustainable development goals through innovative finance”