Morocco preparing law to allow crypto, CBDC Research

• Despite the ban on crypto, an estimated 3.1% of Moroccans hold digital currencies
• BAM is evaluating how a digital dirham could help achieve public policy goals, particularly in expanding financial inclusion.

Morocco is making strides toward formal cryptocurrency regulation as its central bank, Bank Al Maghrib (BAM), develops a draft law to oversee digital assets. During a recent conference in Rabat, Abdellatif Jouahri, the bank’s governor, shared that the proposed legislation is now in the adoption phase. This move reflects the country’s intent to address the growing presence of crypto, which have remained banned in Morocco since 2017.

Despite the ban, an estimated 3.1% of Moroccans hold digital currencies, often relying on peer-to-peer trading platforms to navigate restrictions. The proposed regulation aims to create a legal framework to manage the challenges and opportunities associated with cryptocurrency use. Governor Jouahri described the measure as a significant step toward managing the rise of digital assets while ensuring economic stability.

In parallel with the regulation efforts, Morocco is also exploring the potential introduction of a central bank digital currency (CBDC). Unlike decentralized cryptocurrencies, CBDCs are issued and controlled by central banks. According to Jouahri, BAM is evaluating how a digital dirham could help achieve public policy goals, particularly in expanding financial inclusion. The focus on CBDCs aligns with the government’s broader objective of enhancing access to financial systems, especially in underserved communities.

Morocco’s initiatives comes amid growing interest in CBDCs grows globally. Data from the Atlantic Council reveals that 134 countries are currently exploring CBDCs, with 66 of them—including all G20 nations—in advanced stages such as pilot testing or full implementation. Many governments view CBDCs as a tool to modernize financial systems and improve transaction security while addressing the risks associated with unregulated cryptocurrencies.

Morocco’s approach mirrors shifts seen in other nations that initially imposed strict bans on digital currencies. When Morocco banned cryptocurrencies in 2017, the decision was motivated by concerns about their misuse for fraud, money laundering, and other illicit activities. However, the continued growth of cryptocurrency adoption worldwide has prompted governments to reassess their strategies.

In Africa, digital currencies have gained traction but also have been viewed with suspicion in recent years. In 2021, the Central Bank of Nigeria  banned crypto by prohibiting all financial institutions from servicing crypto exchanges in the country. In 2022, the Nigerian SEC published a regulatory framework targeting crypto exchanges.

In late 2023, the CBN lifted the ban on transacting in crypto but also pushed new regulations that aim to restrict peer-to-peer crypto exchange using the national currency, the Nigerian naira.

Global acceptance of crypto shows how countries are recalibrating their policies. Bolivia, for instance, lifted its blanket ban on cryptocurrencies this year, enabling financial institutions to engage with digital assets. Similarly, while China has restricted most cryptocurrency activities, it has moved forward with its own digital yuan initiative.

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