Morocco is on the verge of legalising the use of digital assets as it moves to adopt a draft cryptocurrency law. In November 2017 it was banned when the Office des Changes issued a public statement declaring transactions involving virtual currencies were illegal and subject to penalties. This stance reflected a more widespread global suspicion and concern about the use of cryptocurrencies at this time.
Yet despite the ban, Moroccans continued to illicitly use Bitcoin and other cryptocurrencies. According to 2022 estimates, almost 5% of the population owned digital assets and the Chainanalysis blockchain data analysis company estimated that Morocco was second only to Nigeria in Africa for crypto usage last year.
The government has clearly decided it is time to adopt a new stance towards digital assets in line with its intention to modernise the economy. The Bank al-Maghrib’s governor, Abdellatif Jouahri, recently told an international conference in Rabat that the bank had prepared a draft law regulating crypto assets and that this law was ‘in the adoption process.’ He further explained that it had been drawn up with the assistance of the World Bank and the IMF and that it has been designed to both protect individuals from the associated risks and to encourage innovation in the field.
Jouahri also revealed that the Bank al-Maghrib is exploring the extent to which digital currency could ‘contribute to achieving certain public policy objectives, particularly in terms of financial inclusion.’ To this end, it is looking at the possibility of introducing a Central Bank Digital Currency (CBDC) which could be issued and controlled by the bank in the form of an ‘e-Dirham.’ The central bank is also planning to launch a financial education initiative aimed at highlighting the advantages of the digital economy in order to build public trust and acceptance of cryptocurrencies.
This excerpt is taken from Morocco Focus, our monthly intelligence report on Morocco. Click here to receive a free sample copy.The November 2024 issue of Morocco Focus also includes the following:
Foreign Relations
- Morocco is optimistic about relations with US under Trump…
- Implications
- Franco-Moroccan relations continue to flourish
Politics
- Reshuffle has mixed results….
Security
- Joint terrorism operation with Spain
Energy & Economy
- NMGP’s economic viability could be threatened
- Morocco set to legalise cryptocurrencies
- Serious shortage of medicines
