In a striking reversal of its earlier stance, Morocco has decided to draft a cryptocurrency legislation and plans to legalize all cryptocurrencies. This announcement follows Morocco’s banning of digital currencies in 2017. The change of stance comes from Bank Al-Maghrib, Morocco’s central bank, which has readied a draft law on cryptocurrency regulation for review.
Abdellatif Jouahri, the governor of Morocco’s central bank, revealed to Reuters that the regulation of cryptocurrencies is currently underway. Despite a nationwide prohibition on cryptocurrencies like Bitcoin in 2017, a notable portion of Moroccans still hold digital assets. The move to draft a digital currency law aligns with the rising global interest in Bitcoin, especially after the cryptocurrency’s recent surge close to $100,000.
Moreover, the Moroccan central bank is keen to explore central bank digital currency (CBDC). As Jouahri explained, the extent to which this new currency could influence public policy objectives, especially with reference to financial inclusion, is being investigated. CBDCs, issued on permissioned blockchain networks controlled by a central financial institution, provide a contrast to decentralized public blockchain networks like Bitcoin and Ethereum.
The decision to draft a cryptocurrency regulation is part of a larger, global trend inspired heavily by Europe. Notably, the United Kingdom’s Financial Conduct Authority (FCA) recently released a plan to regulate digital currencies by 2026. The EU’s comprehensive regulatory framework, the Markets in Crypto-Assets Regulation (MiCA) is set to be a forerunner, expected to go live in late 2024. This has severely influenced other countries to develop their own regulations for digital assets.