BoG warns public against Kwame Bediako aka Cheddar’s cryptocurrency, Freedom Coin

The Bank of Ghana has warned that it has not given license for a cryptocurrency named “Freedom Coin” to be launched. The digital currency was set to be launched by Ghanaian businessman, Nana Kwame Bediako, otherwise known as Cheddar.

Cheddar had expressed intentions to launch the cryptocurrency during the country's Independence Day celebrations. He had indicated that the new cryptocurrency would offer “freedom of wealth, freedom of hope, freedom of investment and freedom of development” to Ghanaian youths.

However, a statement released by the Central Bank on Wednesday, 9th March, 2022 noted that “neither the Freedom Coin cryptocurrency nor the promoting company has approval from Bank of Ghana to operate in the banking and payment sector.”

The statement signed by the Secretary of the Bank of Ghana, Ms Sandra Thompson cautioned the public against trading with the Freedom Coin after its launch or performing transactions with any other form of cryptocurrency

In a March 29, 2019 statement, the Securities and Exchange Commission warned that all cryptocurrencies including Bitcoin, XRP, Lite Coin, Ethereum, Monero, XRP, Tether, Tron, Binance Coin, Neo etc. were unlicensed and unrecognized as legal tender in Ghana. 

Cryptocurrencies are popular in Ghana and other African states due to their fast growing nature and high promising returns. However, the SEC has maintained that the platforms on which they are traded remain unlicensed and unregulated. As a result, cryptocurrencies are high risky endeavors and may contribute directly to loss of wealth.

The statement by the Bank of Ghana has also reiterated this stance on an absence of regulation for cryptocurrencies including Bitcoins and the Freedom Coin.

By implication, institutions and banks have been cautioned against facilitating payments that involve cryptocurrencies. Meanwhile, it is presently unclear if Cheddar will proceed with the launch and release of the Freedom Coin.