Morocco Moves Toward Cryptocurrency Regulation, Explores CBDC Development

Morocco is advancing toward the regulation of cryptocurrencies with a draft law currently in the adoption phase, according to Abdellatif Jouahri, the governor of the country’s central bank, Bank Al Maghrib. This marks a potential shift in policy for a country where cryptocurrencies have been officially banned since 2017, though underground usage persists as individuals circumvent the restrictions.

Speaking at an international conference in Rabat, Jouahri revealed that Bank Al Maghrib has crafted a draft law aimed at regulating crypto assets. “The central bank has prepared a draft law regulating crypto assets, which is currently in the adoption process,” he stated, signaling a move toward greater oversight and formalization of cryptocurrency use in the nation.

In addition to regulating cryptocurrencies, the central bank is exploring the development of a central bank digital currency (CBDC), Jouahri confirmed. He explained that Morocco is considering how a CBDC might align with the country’s public policy goals.

“Regarding central bank digital currencies, and like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion,” Jouahri said.

A CBDC differs fundamentally from cryptocurrencies in that it is centrally controlled by the issuing central bank, whereas most cryptocurrencies operate on decentralized networks. The exploration of a CBDC reflects a global trend, as governments and central banks worldwide examine the potential benefits of digital currencies in areas like economic efficiency and financial inclusion.

Morocco’s steps toward regulating cryptocurrencies and examining the potential of a CBDC illustrate its attempt to strike a balance between innovation in financial technologies and regulatory control in a rapidly evolving global financial landscape.

By fLEXI tEAM