Morocco is rather conducting a lot of efforts to address the question of cryptocurrencies as there is a draft law in process now, as stated by Abdellatif Jouahri, the governor of the central bank of the country. This is a departure from the previous position, as the use of digital currencies was prohibited since 2017.
Morocco Moves Toward Legalizing Cryptocurrencies
However, this culture of cryptocurrency usage has not been abolished in Morocco due to its Illegalization, and citizens are still using such virtual currencies inform of the prohibited legal tender through the black market and other undeclared platforms. The action of regulating crypto by the government show an intervention to try and control the progressive advancement.
The new legal framework appears to be making the cryptocurrency transactions occur legally, so that investors and consumers get better definitions and protection. This is anticipated to spur the local economy and maybe even create an environment conducive for foreign exchanges dealing with cryptocurrencies.
Abdellatif Jouahri said the law would identify the dangers of buying cryptocurrencies, namely money laundering and scamming while enabling Morocco to unlock the value of blockchain.
With the continuously shifting global financial systems, Morocco trying to regulate instead of completely banning cryptocurrencies shows that more and more nations are trying to find a way to include cryptocurrencies into their system. Which would make some people to think that this could pave way for other financial reforms in the country.
Bank Al Maghrib Moves Forward with Crypto Regulation Draft
The Bank Al Maghrib or the central bank of Morocco has already indicated its intention towards legalizing cryptocurrency assets as the central bank governor, Jouahri noted. Delivering a speech at an international conference in Rabat Jouahri affirmed that a draft law is now in the adoption state.
This development occurs when for quite some time now, cryptocurrency was banned in Morocco. The government has tried to create the legal environment for the new type of currency while managing its attempts to develop the financial system.
This assertion from Jouahri shows that there is a high need to control the crypto assets to guarantee that Morocco will adapt to the area as a new market. The objectives of the draft law are rather liberalizing measures together with measures against financial crimes like money mule and fraud.
Such an approach shows the central bank is open for business and ready to make Morocco a regional destination for successfully regulating cryptocurrencies. To establish these standards, the country aims at protecting investors and financial entities linked to digital assets.
Morocco is learning from the global growing trend of adopting cryptocurrencies, and that is why the country seems more interested in regulating the sector as opposed to banning it. The last law could open the path for more financial changes in the country.
Morocco Explores Central Bank Digital Currency for Financial Inclusion
Previously, Bank Al Maghrib favored carrying out a comprehensive quantitative evaluation of all its money supply; in its most recent financial plan, the bank is interested in a Central Bank Digital Currency (CBDC). In a recent statement, Abdellatif Jouahri, the bank’s governor, unveiled the exploration and added that Morocco is not the only country doing so.
The bank is especially concerned about how a CBDC can enhance financial inclusion in the country. Thus, by introducing an electronic currency, which would be issued by the central bank, the Moroccan population can have a more significant access to basic financial services.
This is in contrast to decentralized cryptocurrencies; Morocco’s proposed CBDC would be managed entirely by the national central authority. This gives broader supervision and consistency, thus protecting the merits of digital commerce as being secure and reliable.
Amid global debates about the possibilities offered by CBDCs, Morocco is also looking at the possibility. Central banks are gradually focusing on digital currency as a means of revamping current techniques and providing better ways of executing payments.
An effective implementation of a CBDC can considerably fill the specific gaps in Moroccan’s financial environment, providing easier access to digital payment and decreasing dependency on cash for the Moroccan population and other users. This currency is only one of the prospects towards financial inclusion Morocco is pursuing.
