Morocco to Legalize Cryptocurrencies and Consider Central Bank Digital Currency
Morocco is moving towards legalizing all cryptocurrencies, reversing a ban imposed in 2017. The central bank, Bank Al-Maghrib, is preparing a draft law for crypto regulation, which is currently under review. Governor Abdellatif Jouahri confirmed that this draft law is being adopted, signaling a significant shift in the country's stance on digital currencies. This proposed law aims to regulate cryptocurrencies more effectively, acknowledging growing interest despite the initial ban.
The 2017 ban on Bitcoin (BTC) and other cryptocurrencies did not prevent widespread use of digital assets. The shift toward legalization coincides with increasing global interest in Bitcoin, which recently approached its historic milestone of $100,000, further fueling discussions in the crypto space.
Additionally, Morocco is exploring the possibility of launching a central bank digital currency (CBDC). Jouahri noted that the central bank is examining how a CBDC could assist public policy goals, particularly in promoting financial inclusion. Unlike decentralized cryptocurrencies like Bitcoin and Ethereum, CBDCs would be issued and controlled by central financial authorities, operating on permissioned blockchain networks.
This move reflects a broader global trend towards clearer regulations in digital finance. Many countries are establishing frameworks inspired by the European Union's upcoming Markets in Crypto-Assets Regulation (MiCA), expected to take effect by the end of 2024. Morocco's interest in updating its crypto policies aligns with a worldwide push for effective regulation of digital assets.
The rise in crypto adoption is evident in actions taken by other countries. In the UK, the Financial Conduct Authority (FCA) announced a roadmap to regulate cryptocurrencies by 2026 after reports indicated over 12% of UK adults own some form of cryptocurrency. As countries like Morocco join the movement towards legalizing and regulating digital assets, it signals a shift in the global financial landscape towards greater acceptance of cryptocurrencies.
Morocco’s central bank's preparation of new crypto regulations aligns with the global trend of developing comprehensive frameworks for digital assets. These regulations would likely provide clearer guidelines for investors and businesses, helping protect users and foster greater trust in the market.
In summary, Morocco’s steps towards legalizing cryptocurrencies and exploring a central bank digital currency highlight the increasing recognition of digital assets' potential in modern economies. With countries like Morocco and the UK taking active measures towards crypto regulation, the digital finance landscape is rapidly evolving, indicating a shift towards a more structured and secure environment for cryptocurrencies.