Morocco’s path to allowing cryptocurrencies veers away from an outright ban and is leaning towards formalizing such use. The country is passing a bill that would draft a regulatory framework regarding the use of digital assets.
The country’s central bank, Bank Al-Maghrib, is also investigating whether a central bank digital currency (CBDC) could modernize its financial system and contribute to this development.
Bank Al-Maghrib Governor Abdellatif Jouahri announced the proposed law at an international conference in Rabat. Jouahri insisted that it would bring much-needed oversight and structure to the country’s burgeoning but unregulated crypto sector.
🚨 Morocco Preparing Law to Allow Cryptocurrencies, Central Bank Chief Says: Reuters 🚨
Crypto have been banned in Morocco since 2017. pic.twitter.com/ZdTPdX7WZ8
— matthew sigel, recovering CFA (@matthew_sigel) November 26, 2024
At the conference, Jouahri revealed that the bank had prepared a draft law regulating crypto assets, which is currently being adopted.
This is a very important policy shift for the Moroccan proposal. Though the 2017 ban was in place, cryptocurrency was still being used via unofficial channels as citizens looked to participate in the global digital asset markets.
The new law is expected to provide a secure and transparent foundation for encouraging innovation while protecting consumers and the financial system.
In addition, Jouahri pointed out the interest of Morocco’s financial strategy to keep in line with the global dynamics of digital assets so that the country maintains its competitive position and technology leadership.
Morocco Explores CBDC As a Tool For Financial Inclusion And System Efficiency
Morocco is also considering the benefits of a CBDC beyond crypto regulation. According to Jouahri, a digital currency backed by the state could also help meet public policy needs, involving widening financial inclusion to those without bank accounts.
Like other countries worldwide, he said we are seeing how a new form of currency could help achieve some public policy objectives, particularly financial inclusion.
The CBDC from Morocco could improve the efficiency of the financial system, shorten transaction fees, and offer a safe alternative to decentralized cryptocurrencies, which are often regulated.
But other nations are proceeding slowly. Norway’s government-appointed task force has advised against rolling out a CBDC immediately. ‘Existing digital payment systems are enough,’ the group said, adding the country’s low cash usage. Only 2% of respondents in a survey said they used cash on their most recent in-person transaction.
The task force said the CBDC is not the only option to achieve privacy protection and financial inclusion. Therefore, it is suggested that existing regulations concerning digital payment systems should first be strengthened.
Whereas Morocco is using its active push to integrate digital currencies, this measured approach reflects different national priorities and financial landscapes.
The proposed crypto regulation and CBDC exploration reflect Morocco’s aim to modernize its financial system regarding the risks and opportunities of digital assets.
A regulatory framework adopted would allow Morocco to become a North African pioneer of cryptocurrency innovation. By balancing consumer protection, financial inclusion, and technological advancement, the country is establishing a more secure, inclusive digital economy.
Morocco’s measures are part of a global trend of revising the role of digital currency as countries attempt to reap its benefits while avoiding its perils.
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