As a researcher who has spent years studying the global impact of cryptocurrencies, I find it fascinating to witness Morocco’s evolution from a crypto skeptic to a potential pioneer in this digital frontier. The country’s strategic shift towards regulation rather than prohibition is a testament to its forward-thinking approach and openness to technological innovation.
Morocco is on the verge of ending its decades-long prohibition on Bitcoin and digital currencies, marking a major change in their financial strategy. As reported by Reuters, Abdellatif Jouahri, head of Bank Al-Maghrib (BAM), revealed that a law regulating cryptocurrency assets is about to be approved. “We have drafted a law governing crypto assets, which is now being considered for approval,” Jouahri said at an international conference in Rabat.
Bitcoin And Crypto Ban Reversal Was Long Planned
In Morocco, the use of cryptocurrencies has been prohibited since 2017 due to worries about financial dangers and market instability. However, this ban hasn’t stopped Bitcoin and other digital currencies from being used covertly. It is estimated that around 4.9% of Morocco’s population, or approximately 1.9 million people, own cryptocurrencies as of 2022. This puts Morocco among the top countries worldwide in terms of cryptocurrency adoption. As per Chainalysis’s 2023 report, it ranks second only to Nigeria within Africa for its crypto usage.
The central bank’s choice to control rather than ban Bitcoin and cryptocurrencies indicates a growing understanding of their possible advantages. Jouahri highlighted that BAM is also considering the creation of a digital currency issued by the central bank (CBDC). “With regard to central bank digital currencies, as many nations worldwide, we are investigating how this new type of money could aid in achieving certain policy objectives, especially in promoting financial inclusion,” he stated.
The process by which Morocco transitioned from an outright prohibition to adopting regulations for Bitcoin and cryptocurrencies has been systematic. In March 2022, Moroccan authorities initiated discussions with the International Monetary Fund (IMF), the World Bank, as well as central banks in Sweden, France, and Switzerland, to examine their regulatory strategies regarding crypto-related activities. This move suggests a possible shift towards a more complex policy stance on the matter.
By June 2022, it was revealed that BAM had planned to present a bill focusing on regulating Cryptocurrencies, a notable shift from their former strict position. In collaboration with the World Bank and IMF, they have been working on drafting this legislation.
In August 2022, the Moroccan Authority for the Capital Market (AMMC) introduced a fintech platform to encourage financial industry participants and foster technological advancements within the sector, suggesting a welcoming regulatory stance towards cryptocurrencies. By December 2022, Governor Jouahri verified that the regulatory framework for cryptocurrencies had been fully developed and prepared for presentation to stakeholders in the fintech sector. As he stated, “Regarding cryptocurrencies, I can assure you that the project is complete. We collaborated with the World Bank to bring it to fruition.
At press time, BTC traded at $92,388 down -5.3% over the past 24 hours.
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2024-11-27 08:11