Morocco is set to revoke its long-held policy prohibiting Bitcoin and cryptocurrencies. Thus heralding a significant move toward crypto-related initiatives in the country. Reports from Reuters confirm that Abdellatif Jouahri, the Governor of Bank Al-Maghrib (BAM), unveiled a digital currency regulation bill that is already at the final adoption stage. “We have crafted a bill to control crypto assets, and it is under the adoption process right now,” was his speech at an international conference in Rabat.
Morocco’s Shift Towards Crypto Regulation
Moroccan people have been unable to use cryptocurrencies since 2017 due to the government’s worries about financial risks and market fluctuations. Even with this ban in implementation, Bitcoin and other cryptocurrencies still found their way, and the created shadow market attracted an estimated 4.9% of the Moroccan population, or approximately 1.9 million people, who hold these extraordinary digital assets in 2022. Morocco is ranked among the top national adopters of crypto in the international sphere. According to Chainalysis’ 2023 report, along with Nigeria in Nigeria in Africa, the usage is second only to Nigeria.
It is an indication of the recognition of the benefits of the former. This decision of the central bank to regulate, instead of prohibiting Bitcoin and cryptocurrencies, has reflected a growing recognition. According to Jouahri, BAM also investigates the possibility of developing a central bank digital currency (CBDC). He stated, “We, like many countries around the world, are assessing to what extent this new form of currency could contribute to meeting certain public policy goals, such as financial inclusion.”
Morocco’s Gradual Shift to Crypto Regulation
Morocco’s venture into regulatory clarity purposes, moving from complete prohibition to accepting cryptocurrencies, has been implemented in a phased manner. In March 2022, Moroccan officials, who used to contend with the IMF, the World Bank, and central banks in Sweden, France, and Switzerland for developing a deployment, were comprehending their policieforto crypto. Thus, there is a possibility of a more sensitive and sophisticated move in the approach of the Middle-East countries to this technology.
By June 2022, BAM decided to introduce a Cryptocurrency Regulation Bill, which, however, saw a shift from its earlier harsh attitude towards the cryptocurrency area. The central bank got the World Bank and the International Monetary Fund involved in cooperating in drafting the legislation.
Morocco Advances Fintech and Crypto Regulation
In August 2022, the Moroccan Capital Markets Authority (AMMC) launched a fintech website. That could make it easier for entities in the market to communicate and explore technology. However, innovations in the financial sector are without opposition from regulatory bodies. The governor stated in December 2022 that the government has fully developed and adhered to the crypto regulatory structure. I can guarantee that the project is already done. He concluded that we had successfully collaborated with the World Bank to achieve our purpose.
BTC traded at $92,388 at press time, down 5.3% over the past 24 hours.
Final Thoughts
Morocco’s pro-crypto transformation masterstroke contributes to setting a new financial horizon. The North African country utilizes the latest technologies and contacts with global coins. The World Bank and IMF are in practice correctly. In this way, news of the technology-enabled today’s crypto ecosystem is coming from Africa. Thus, this method is a feature of dynamic, effective Morocco that is about to transform its financial sector and simultaneously do it comprehensibly and ease citizens’ fears.
FAQs
When was crypto banned in Morocco?
Cryptocurrencies were banned in 2017 due to financial risks and market volatility concerns.
What is Morocco’s stance on CBDCs?
The central bank is exploring the potential of a central bank digital currency (CBDC) to enhance public policy goals.
Who is involved in Morocco’s crypto regulation?
The World Bank, IMF, and Moroccan authorities collaborated on drafting the Cryptocurrency Regulation Bill.
How many Moroccans use cryptocurrencies?
In 2022, around 4.9% of the population, approximately 1.9 million people, held crypto assets despite the ban.
