Morocco prepares to legalize cryptocurrencies and explore digital currency

Despite the ban, Morocco has emerged as a leader in cryptocurrency usage across North Africa

Morocco is taking a decisive step towards embracing digital assets by advancing a long-awaited crypto regulation law. Photo/ Courtesy.
Morocco is taking a decisive step towards embracing digital assets by advancing a long-awaited crypto regulation law. Photo/ Courtesy.

Morocco is taking significant steps toward embracing the world of digital assets with a draft law aimed at regulating cryptocurrencies and exploring the creation of a central bank digital currency (CBDC).

At an international conference held in Rabat, Abdellatif Jouahri, Governor of Morocco’s central bank, Bank Al-Maghrib, confirmed that the proposed law is currently in the adoption process.

“Bank Al-Maghrib has prepared a draft law regulating crypto assets, which is now moving toward adoption,” Jouahri announced, signaling a shift in Morocco’s stance on digital currencies, which have been banned since 2017.

Jouahri also highlighted the central bank’s interest in developing a CBDC, a digital currency issued and controlled by the state. Unlike decentralized cryptocurrencies, CBDCs offer greater regulatory oversight and could be instrumental in advancing financial inclusion across Morocco.

“Like many countries around the world, we are exploring how CBDCs could help achieve key public policy objectives, particularly in terms of financial inclusion,” Jouahri explained.

Despite the ban, Morocco has emerged as a leader in cryptocurrency usage across North Africa. In 2022, approximately 4.9% of the population owned some form of digital asset, placing Morocco 14th in a global crypto adoption index by Insider Monkey. Additionally, the country ranked fourth in Africa for crypto trading volume, trailing only Nigeria, South Africa, and Kenya.

A report by Triple-A, a Bruneian crypto payments company, revealed that as of January 2022, Morocco ranked 50th globally in crypto adoption, with 2.4% of Moroccans actively using or holding digital assets.

While the growing interest in digital assets signals a demand for innovation, Jouahri stressed that full adoption will not occur until a comprehensive regulatory framework is in place. The new law aims to address key issues such as, money laundering, terrorist financing and consumer protection

“The G20 and many countries emphasize the need for a regulatory framework for both cryptocurrencies and CBDCs. Without it, we cannot move forward,” Jouahri said.

Morocco is engaging with central banks in France and Switzerland to learn from their regulatory experiences and ensure that its crypto policies align with international best practices.

While Morocco has not indicated plans to recognize Bitcoin or any other cryptocurrency as legal tender, the upcoming regulations could provide much-needed clarity and stability to the country’s growing crypto sector. Jouahri remains optimistic, describing the adoption of digital currencies as a matter of “when, not if.

“Our goal is to strike a balance between fostering innovation and ensuring consumer safety,” Jouahri added.

The draft law’s impact could extend beyond Morocco, potentially influencing other North African nations to adopt similar frameworks as they navigate the digital currency landscape.

With regulation on the horizon, Morocco is positioning itself to become a key player in Africa’s evolving digital economy—while ensuring that innovation is accompanied by robust consumer safeguards.

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