In a landmark policy shift, Morocco is set to legalize cryptocurrencies, reversing its 2017 ban on digital assets. This move underscores the growing global acceptance of blockchain technology and its potential to reshape financial systems. Abdellatif Jouahri, Governor of Morocco’s central bank, Bank Al-Maghrib (BAM), announced at an international conference in Rabat that a draft law regulating cryptocurrency assets is nearing final adoption.
“We have prepared a draft law regulating crypto assets, which is currently in the adoption process,” said Jouahri. This policy shift marks the culmination of years of discussions with international financial bodies such as the International Monetary Fund (IMF) and the World Bank.
From Ban to Regulation
Morocco initially imposed a ban on cryptocurrencies in 2017, citing concerns over market volatility and unregulated financial transactions. However, the ban failed to curb the growing public interest in digital assets. By 2022, approximately 4.9% of Moroccans were estimated to be using cryptocurrencies, a rise in underground activity. Despite the lack of legal infrastructure, the demand for decentralized financial tools remained high.
The decision to regulate cryptocurrencies instead of maintaining the ban follows a broader global trend of embracing blockchain technology. Morocco’s move aligns with similar developments in regions like the European Union, where the Markets in Crypto-Assets Regulation (MiCA) has prompted other countries to establish comprehensive regulatory frameworks.
Addressing Financial Inclusion with CBDCs
In addition to legalizing cryptocurrencies, Morocco is exploring the benefits of a Central Bank Digital Currency (CBDC), tentatively named the e-dirham. Governor Jouahri noted, “Like many countries around the world, we are exploring how this new form of currency could contribute to public policy objectives, particularly financial inclusion.”
CBDCs, unlike decentralized cryptocurrencies, operate on permissioned blockchain networks controlled by central banks. Supporters believe CBDCs could modernize financial transactions, reduce reliance on cash, and address issues such as money laundering and fraud.
Despite the potential benefits, Moroccan citizens remain cautious about the traceability of digital transactions and mobile wallets. To address these concerns, BAM plans to implement financial education initiatives aimed at building public trust in digital currencies, demonstrating their ability to enhance security, transparency, and economic efficiency.
The Road Ahead
Morocco’s move aligns with a global trend of countries exploring or implementing cryptocurrency regulation. The UK’s Financial Conduct Authority (FCA) recently outlined plans for cryptocurrency regulation by 2026, while other nations in Africa and beyond are increasingly recognizing digital assets as a means of promoting financial inclusion in areas with limited access to traditional banking systems.
Morocco’s efforts to legalize cryptocurrencies and explore the use of CBDCs represent a crucial shift in its financial policy. By balancing innovation with regulation, Morocco hopes to harness the advantages of digital assets while managing potential risks. As the proposed law progresses, Morocco joins the growing list of countries embracing the digital banking revolution.
