Key Highlights:
- Morocco drafts new legislation to legalize cryptocurrency use after a six-year ban.
- Central bank also exploring a digital dirham to boost financial inclusion.
Paradisers! Could Morocco’s underground crypto market soon go mainstream? In a surprising twist, the country that banned cryptocurrencies back in 2017 is now paving the way for legalization. Abdellatif Jouahri, Governor of Bank Al-Maghrib, confirmed during a conference in Rabat that a draft law to regulate crypto is in the works and nearing adoption.
From Bans to Bitcoin
Since its 2017 ban, crypto activity in Morocco has thrived, albeit in the shadows. Citizens, ever resourceful, have bypassed restrictions to trade through underground channels. Now, it seems the government has decided that if you can’t beat them, regulate them. Jouahri acknowledged the inevitability of crypto adoption and announced that the new regulation aims to bring this burgeoning market into the light.
Digital Dirhams on the Horizon?
But Morocco isn’t stopping at just legalizing Bitcoin and Ethereum. Jouahri revealed that the central bank is also exploring the launch of a central bank digital currency (CBDC), a state-controlled digital version of the Moroccan dirham.
Unlike decentralized cryptocurrencies, a CBDC would allow the central bank to maintain direct control over monetary policy while potentially driving financial inclusion. Jouahri emphasized that such a move could address public policy goals, offering secure, low-cost financial services to unbanked populations across the country.
A Shift in Strategy
This move puts Morocco in step with global trends, as nations from China to the UK explore similar digital currencies. The new legislation is seen as a crucial step in creating a legal framework to both harness crypto’s potential and minimize its risks.
Critics of the ban have long argued that outlawing crypto has done little to stop its use and much to limit innovation. With legalization, Morocco could unlock new economic opportunities, attract crypto entrepreneurs, and tap into blockchain’s transformative power.
What’s Next?
While details of the regulation are still under wraps, the shift signals a bold new direction for Morocco’s financial system. Will the country’s digital transformation spark a wave of innovation, or will regulatory missteps stifle progress before it begins? One thing’s for sure: Morocco is ready to trade in the shadows for a spotlight, embracing crypto and digital finance in a move that could reshape its economy.
