Morocco Drafts Law to Legalize Cryptocurrency as Bank Al Maghrib Explores CBDC

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Morocco is making waves in the financial world by drafting a law to regulate cryptocurrencies. This comes after a 2017 ban that drove crypto activity underground. The country’s central bank, Bank Al Maghrib, is taking charge of this effort, seeking to balance innovation with regulation.

From Ban to Control

Despite the ban on cryptocurrencies, around 3.1% of the total population of Morocco owns some form of cryptocurrency. Users have been finding creative ways to bypass restrictions. Now, the draft law aims to bring this activity into a legal framework. Bank Al Maghrib has also hinted at exploring a Central Bank Digital Currency (CBDC), signaling a broader strategy to modernize the financial system.

The Role of CBDCs

The concept of a Moroccan CBDC isn’t entirely new. Back in 2021, a committee was formed to study its potential. However, no major updates followed. Fast forward to today, and the focus is back on CBDCs, with Governor Abdellatif Jouahri emphasizing their potential to enhance financial inclusion. Unlike decentralized cryptocurrencies, CBDCs are controlled by the central bank, offering a more stable digital alternative.

Strategic Goals

The draft law and CBDC exploration are part of Morocco’s larger plan to achieve financial stability and economic growth. By regulating crypto and embracing digital currencies, the country aims to modernize its economy while maintaining oversight.

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What’s Next?

As Morocco moves from banning crypto to regulating it, the world is watching. If successful, this could set an example for other nations grappling with similar challenges. For now, the spotlight is on how these plans will shape Morocco’s financial future.

This is a developing story, stay tuned for more updates.