Morocco is moving further in their attempts to open up cryptocurrencies and that certainly shows the country’s shift in focus towards cryptocurrencies. Now that Morocco’s central bank Bank Al-Maghrib has reportedly developed a draft law, a more safe and standardized technology environment of the financial sector will be formed. This comes at a time when citizens’ interest in cryptos is stretching up, and this shows that the risks are being measured against the opportunities as they phase out.
Strategic Management Framework for the Regulation of Digital Property
Bank Al-Maghrib unveiled its intention to release a cryptocurrency regulation policy at a conference held in Rabat. Abdellatif Jouahri, the governor of the bank, disclosed that the draft law, developed in cooperation with the different stakeholders with assistance from the World Bank, is being perfected.
He emphasized the importance of regulation to address potential risks while allowing innovation to thrive: “The different chapters are okay. Well, right now, we are in more dialogues with different interested parties. This one is a little long, but bear with me, please, for the sake of hopefully having the full support on this project”.
It is one of the measures that the government of Morocco is taking to ensure it is ready for the speedy integration of digital assets. Thus, in making standard practices obvious, the authorities try to prevent certain threats, including fraud and other unlawful operations, as well as encourage the population to use financial services actively.
Central Bank Digital Currency (CBDC): The Next Frontier
Besides cryptocurrency legislation, Bank Al-Maghrib is researching whether the implementation of a CBDC will bring additional advantages to the country. Speaking to Jouahri, the bank has been researching various countries’ CBDCs to assess the feasibility of implementing them in Morocco.
He stated: “We initiated the CBDC project over three years ago to inform strategic direction and enhance experience in this specialised field.”
On the positive side, a CBDC might afford such advantages as upgrades of the rate of the money inclusion and diminishing the cost of transactions. This vision corresponds to recurrent trends in many countries evaluating the benefits of central bank digital currencies.
Morocco’s Shift: From Crypto Ban to Regulation
The recent measures taken by Morocco with regard to cryptocurrencies are different from its previous measures. Moroccan Exchange Office in 2017 declared cryptocurrency transaction as a violation of exchange regulations and also issued a notice to the public regarding consumer risks and their connection with the unlawful activities.
Nevertheless, the acceptance of cryptocurrency has tremendously increased in Morocco. The public awareness of digital assets has created pressure on the government to change its stance, which has resulted in the creation of this draft regulation. As of December 2022, the executive director of Bank Al-Maghrib suggested that the preparation for the regulation of cryptocurrencies has been nearly finalised.
Such a move highlight the willingness of Morocco to open up for changes in the financial sector while at the same time protecting the consumer and monitoring international legal policies.
Conclusion
This is especially true as Morocco outlines its approach to the future of money and examines the potential of CBDCs, and remains one of many examples of how furthering innovation can also be done with careful consideration. Through engagement of relevant relevant stakeholders and leveraging on international best practice, Morocco has set itself in a pedestal to establish a secure, inclusive and innovative financial system.
The draft framework can be considered the beginning of Morocco’s path to the adoption of digital assets, as well as emphasizing the need for regulated growth. As the world remains obsessed with cryptocurrencies, then Morocco’s progressive policy could be the key to better financial future. Keep following The Bit Journal and keep an eye on crypto updates and developments.
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