By Ebenezer Chike Adjei NJOKU
Traditional banks in the country must urgently integrate blockchain technology into their operations or risk being displaced by decentralised finance platforms, Sammy Crabbe, a technologist and business leader, has said.
In a recent and exclusive interaction with the B&FT, Mr. Crabbe stated that while decentralised finance (DeFi) offers “faster, cheaper, and more transparent services,” the more established financial institutions possess critical advantages in trust, regulation, and customer familiarity that could secure their future if properly leveraged.
“Ghanaian banks can bridge this gap by integrating blockchain for back-end operations such as settlements, identity verification, and compliance reporting,” Mr. Crabbe said, pointing to a host of financial institutions, mostly in the Global North, that have already begun offering cryptocurrency custody services and blockchain-based asset trading.
The intervention comes as the domestic financial sector faces mounting pressure from technological disruption. Mobile money transactions in the country crossed GH¢3 trillion in 2023, representing a 57 percent increase from the previous year, according to Bank of Ghana (BoG) data. In April 2025 alone, the metric stood at GH¢365 billion. Meanwhile, traditional banking services continue to play catch-up to match the convenience and accessibility of digital alternatives.
DeFi platforms globally have seen explosive growth, with total value locked (TVL) reaching over US$138 billion in 2024, down from peaks of over US$180 billion but still representing significant market share erosion from traditional financial services. The technology enables financial transactions without traditional intermediaries, potentially reducing costs and increasing speed.
However, Mr. Crabbe argued that rather than viewing blockchain as a threat, Ghanaian banks should position themselves at the centre of a hybrid financial future that combines decentralised tools with regulated services. “Banks that embrace these changes will not be displaced; they will be at the heart of combining the best of decentralised tools with trusted, regulated services,” he said.
The former data entry and medical transcription pioneer, who helped establish Ghana’s early digital service sectors, outlined specific integration strategies for local banks. These include partnerships with fintech startups to pilot blockchain-enabled loan platforms and digital savings products, as well as utilising regulatory sandboxes created by the BoG.
Regulatory sandboxes allow financial institutions to test innovative products in controlled environments while maintaining oversight. The central bank established its regulatory sandbox in 2020, though uptake has been limited compared to similar programmes in Kenya and Nigeria.
Ghana’s banking sector, dominated by local and foreign institutions has shown varied responses to digital innovation. While most have introduced mobile banking platforms, blockchain integration remains nascent. The sector comprises 23 universal banks with combined assets of GH¢274 billion as of December 2023, according to the BoG. However, profit margins have been under pressure, on account of the government’s debt restructuring programme and partly due to increased competition from digital financial services.
Mr. Crabbe’s recommendations align with global trends in banking evolution. In Switzerland, major banks including UBS and Credit Suisse have integrated cryptocurrency services, while Singapore’s DBS Bank has established a comprehensive digital exchange for institutional clients.
The BoG has signaled openness to blockchain innovation, launching a central bank digital currency pilot programme in 2022. The eCedi project aims to complement existing payment systems while providing a foundation for broader digital finance innovation. The regulator, in April 2025, also disclosed plans to begin regulating cryptocurrency platforms and virtual asset providers in Ghana by the end of September 2025.
However, implementation challenges remain significant. The domestic financial institutions face constraints, including limited technical expertise, regulatory uncertainty, and infrastructure limitations that could impede blockchain adoption. “The regulatory sandbox approach allows these experiments under controlled conditions,” Mr. Crabbe noted, adding that this provides a pathway for gradual integration rather than disruptive transformation.
Industry experts have expressed cautious optimism about blockchain integration prospects. arguing that while the technology offers clear benefits, implementation requires substantial investment in both technology and human capital.
The banking sector’s response to blockchain integration could prove crucial for Ghana’s broader fintech development. Mobile money services, led by operators such as MTN and Vodafone, have demonstrated strong consumer appetite for digital financial services, creating both opportunity and competitive pressure for traditional banks. “Traditional financial institutions have a pivotal opportunity – not just to survive in the age of decentralised finance, but to evolve and lead,” Mr. Crabbe added.
