Morocco is on the verge of revolutionizing its stance on cryptocurrencies. For the first time since 2017, the country is preparing to introduce a new law that may lift the existing ban on digital currencies. This significant move was highlighted by Abdellatif Jouahri, the governor of Morocco’s central bank, Bank Al Maghrib, during an international conference held in Rabat.
Proposed Regulation for Cryptocurrencies
According to a report by Reuters, the central bank is currently drafting a regulatory framework aimed at integrating cryptocurrencies into Morocco’s financial ecosystem. Jouahri stated, “The bank has prepared a draft law regulating crypto assets, which is currently in the adoption process.” This development indicates a shift toward legitimizing and overseeing cryptocurrency transactions, which had been taking place through unofficial channels due to the previous ban.
Potential Adoption of Central Bank Digital Currency (CBDC)
In addition to regulating cryptocurrencies, Jouahri also mentioned that the central bank is exploring the potential of a Central Bank Digital Currency (CBDC). He stated that like many other nations, Morocco is investigating how CBDCs could help in achieving specific public policy objectives, particularly in enhancing financial inclusion. This aligns Morocco with the global trend of seeking to modernize financial systems through digital currencies.
Global Perspectives on CBDC Implementation
While Morocco advances its regulatory agenda, other countries are taking a more cautious approach to CBDCs. Recently, a task force appointed by the Norwegian government recommended delaying the immediate adoption of a CBDC. The group expressed that there is no pressing need for digital currencies at this moment, emphasizing the importance of ensuring existing payment systems are secure and reliable.
Cash Usage in Norway and Recommendations
The Norwegian committee highlighted that cash usage has plummeted in the country, with only 2% of surveyed individuals using cash for their most recent in-person payment. Despite this decline, the committee views cash as a vital component of secure and inclusive payment systems. They recommended updating regulations that would allow for the future implementation of a CBDC while simultaneously ensuring that digital payment systems remain robust and accessible for all citizens. Although presently deemed unnecessary, the committee acknowledged that a digital currency could play a significant role in enhancing financial inclusivity, privacy, and emergency preparedness in the long run.