By Enyichukwu Enemanna
The central bank of Morocco on Tuesday said a draft law on cryptocurrencies is in process and will be adopted when fully enacted.
The bank “has prepared a draft law regulating crypto assets, which is currently in the adoption process,” the governor Abdellatif Jouahri, said at an international conference at the country’s capital, Rabat on Tuesday.
Cryptocurrencies have been banned in Morocco since 2017, but the public continues to use them secretly, circumventing restrictions.
Reuters quoted the central bank chief as saying that the apex bank is exploring a central bank digital currencies (CBDCs), which is to be controlled by the central bank, as against cryptocurrencies that are usually decentralised.
“Regarding central bank digital currencies, and like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion,” he said.
According to a report from a Bruneian crypto payments company, Triple-A, Morocco was leading in the North African region and was number 50 in the world in crypto adoption as of January 2022.
Data also shows that 2.4% of Moroccans use or own digital assets. The latest data in 2021 also shows that the country ranked fourth behind Nigeria, South Africa, and Kenya in crypto trading volume ($6 million) across Africa.
“The country still has a long way to go in terms of introducing crypto-friendly regulations and accepting it as a mainstream form of payment by the government and the public alike,” the report said.
The International Monetary Fund (IMF) had in 2022 urged countries to regulate the crypto sector. It also warned about the dangers of legalising digital assets like Bitcoin.
A few months later, the Moroccan central bank acknowledged the growth of cryptocurrency in the country and announced that it was “engaging with the central banks of friendly nations such as Switzerland and France to learn from their expertise and experience.”
The central bank Governor Jouahri also confirmed that the institution was in discussions with two other major financial institutions, noting that adopting cryptocurrencies in the country was a matter of ‘when’ and not ‘if’ because it ‘represents the future’.
The governor maintains that the adoption should not take place until there is a legal framework in place.
Since its introduction in a 2008 whitepaper, Bitcoin (BTCUSD) has generated controversy and news. While enthusiasts hail its launch as an advent of a new and equitable monetary system, critics point to the cryptocurrency’s role in criminal activities and the absence of legal recognition as an official currency.
While some countries, including El Salvador, have adopted it as currency, others refuse to recognize it as legal tender, treat it as a commodity or property, or are considering banning it completely.
