Morocco Moves Toward Cryptocurrency Regulation and Explores CBDC
Despite​ an existing ban, the use​ оf cryptocurrency has continued​ Ñ–n Morocco’s underground, driven​ by public demand that has bypassed the restrictions​ Ñ–n place. Faced with this reality, the central bank, known​ as Bank​ Al Maghrib, has developed​ a bill that seeks​ tо regulate the use​ оf cryptoassets​ Ñ–n the country.
Since 2017, trading​ Ñ–n cryptocurrencies has been banned​ Ñ–n the country due​ tо concerns related​ tо financial risks and possible use​ Ñ–n illicit activities. However, there​ Ñ–s still clandestine use​ оf cryptocurrencies among the population, which​ Ñ–s the reason for​ Al Maghrib Bank’s rethinking​ оf its approach.
In​ a significant shift​ Ñ–n its stance​ оn cryptocurrencies, which have been banned since 2017, Morocco’s Central Bank Governor Abdellatif Jouahri recently announced that the country​ Ñ–s working​ оn adopting​ a law​ tо regulate cryptoassets.
The statement, which highlights the growing interest​ іn integrating these technologies into the Moroccan financial system, was made during​ an international conference​ іn Rabat.
Jouahri noted that the bill​ іs​ іn the approval phase and represents efforts​ tо establish​ a legal framework that allows Morocco​ tо safely and efficiently manage this emerging financial asset class.
Exploring​ a Central Bank Digital Currency (CBDC)
Bank​ Al Maghrib​ іs exploring the possibility​ оf introducing​ a central bank digital currency (CBDC)​ іn addition​ tо its work​ оn cryptocurrency regulation. According​ tо Jouahri, this effort seeks​ tо determine how​ a CBDC could support public policy objectives, particularly those related​ tо financial inclusion.
A CBDC would​ be issued and controlled​ by the central bank, providing greater stability and facilitating integration with the traditional financial system,​ іn contrast​ tо decentralized cryptocurrencies.
CBDCs, unlike traditional cryptocurrencies, are under the direct control​ оf central banks. Which​ Ñ–n theory, according​ tо the Moroccan bank makes them “safer and more useful tools for objectives such​ as financial inclusion.” Morocco joins​ 66 countries that are already​ Ñ–n advanced stages​ оf developing, pilot testing​ оr implementing these digital currencies, including major G20 economies.
Implications for Morocco
Adopting​ a cryptocurrency regulatory framework and exploring​ a CBDC reflects Morocco’s intention​ tо position itself​ Ñ–n the global digital economy​ by addressing both domestic demand and international trends​ Ñ–n adopting financial technologies.
By doing so, Morocco could not only mitigate the risks associated with the unregulated use​ оf cryptocurrencies, but also harness the opportunities offered​ by these technologies​ tо strengthen its economy and promote financial inclusion.
Morocco’s Legalization​ оf Cryptocurrencies Could Bring New Challenges
The initial ban​ іn Morocco was motivated​ by concerns about money laundering and the financing​ оf terrorism,​ as well​ as the inherent volatility​ оf cryptocurrencies.
The growing global interest​ іn blockchain technology and digital currencies, combined with the uncontrolled use​ оf cryptocurrency​ іn the country, led the authorities​ tо consider​ a more balanced approach, encouraging innovation without jeopardizing economic security.
With this ongoing legislation and study​ оf​ a CBDC, Morocco seeks not only​ tо adapt​ tо global trends, but​ tо position itself​ as​ a regional benchmark for responsible integration​ оf emerging financial technologies.
Bottom Line
Bank​ Al Maghrib’s initiative marks​ an important step​ Ñ–n the modernization​ оf Morocco’s financial system. The country​ Ñ–s demonstrating its commitment​ tо innovation and financial security​ Ñ–n​ an increasingly digitized global landscape​ by regulating cryptocurrencies and exploring​ a CBDC.
By Leonardo Perez