After a seven-year prohibition, Morocco is on the brink of embracing cryptocurrency. According to Reuters, the country plans to introduce legislation that will create a regulatory framework for the use of digital assets and transactions.
Abdellatif Jouahri, the governor of Bank Al Maghrib (BAM), Morocco’s central bank, revealed that a new law aimed at regulating cryptocurrencies is currently in the works. This proposal is expected to gain traction soon.
In addition to this legislation, BAM is also exploring the possibility of launching a central bank digital currency (CBDC). Jouahri highlighted that numerous countries are investigating how CBDCs can support various public policy aims, particularly improving financial inclusion.
Global Perspective on CBDCs
According to data from the Atlantic Council, 134 countries are currently studying the viability of CBDCs, a notable jump from just 35 in May 2020. Out of these, 66 nations are making significant progress, entering phases like development, pilot testing, or full implementation. All G20 countries are actively evaluating CBDCs, and 19 of them have moved into more advanced stages of their exploration.
Morocco’s previous ban on cryptocurrency, instituted in 2017, was primarily motivated by concerns over the risks tied to digital assets. Authorities, particularly the central bank, warned the public that cryptocurrencies could be misused for illegal activities such as money laundering and financing terrorism.
Changing Attitudes Towards Cryptocurrency
In November 2017, the Office des Changes, which oversees currency regulations, declared that transactions involving virtual currencies were illegal and could incur penalties based on existing laws. At that time, global sentiment towards cryptocurrencies was largely skeptical, with many countries issuing warnings about the unregulated and unpredictable nature of these digital assets.
Despite the official ban, interest in cryptocurrency has persisted in Morocco, with many individuals resorting to underground methods for trading. Other nations, like Bolivia, have begun reevaluating their positions on cryptocurrencies. Recently, Bolivia lifted its outright ban to modernize its payment systems, allowing financial institutions to engage with digital assets.
In stark contrast, China has taken a more restrictive approach. After imposing limits on cryptocurrencies in 2013, it escalated its stance to an outright ban in 2021, prohibiting all crypto transactions and initial coin offerings.
Source: Cryptobriefing.com
