Key Points
- Crypto has been banned in Morocco in 2017, but the public uses it underground.
- Bank Al Maghrib prepared a draft law regulating crypto assets, which is currently in the adoption process.
Morocco is on its way to officially legalize digital assets again, according to the latest reports.
A November 26 article by the Reuters press agency, reported that a draft law on crypto is currently undergoing the process of adoption in the country, citing official statements from the governor of its central bank, Abdellatif Jouahri.
Pro-Crypto Law, Currently in the Adoption Process
The country’s central bank known as Bank Al Maghrib has reportedly prepared a draft law regulating crypto, and this is currently undergoing the adoption process, stated Jouahri during an international conference in Rabat.
Also, the bank is currently exploring a CBDC (central bank digital currency), according to Jouahri.
He said that Morocco is now exploring to what extent a CBDC could contribute to achieving certain public policy objectives, especially in terms of financial inclusion, Reuters reports.
However, the use of a CBDC would probably not be too welcomed by crypto enthusiasts, as such a form of money stands for something completely different compared to crypto, involving surveillance, centralization, and limited freedom.
Crypto, and Bitcoin, on the other hand, are about financial freedom, sovereignty, and the right to self-custody, among others.
These are some of the elements that the recently re-elected US President Donald Trump has highlighted for the country, also promising that he would not allow the creation of a CBDC in the US.
Crypto Growth in Morocco Increased, Despite Ban
In Morocco, digital assets have been banned since 2017, but the public still uses them underground, bypassing restrictions, according to Reuters.
However, on July 5, 2023, Forbes published an article addressing crypto regulation in Africa, which highlights crypto growth in Morocco between 2021 and 2022.
According to their notes, crypto use grew from 2.4% to 3.1% during this period, in spite of the nationwide bans on trading and possessing crypto since 2017.
After five years of banning crypto, the Central Bank of Morocco (BAM) announced that it was keen not to limit innovation and protect citizens from the various risks associated with the digital assets industry, Forbes noted in the 2023 article.
These remarks were reportedly part of a press conference held in December 2022. Back then, Moroccan enthusiasts welcomed these remarks from the BAM governor, as they believed in the potential economic gains that could come from using digital assets despite strong bans.
