Morocco Considers Central Bank Digital Currency for Cross-Border Payments

Morocco's central bank is actively exploring the potential of a Central Bank Digital Currency (CBDC) to streamline both peer-to-peer and cross-border payments. This initiative, announced by Governor Abdellatif Jouahri, aims to modernize the nation's payment infrastructure.

Currently, cryptocurrencies are banned in Morocco since 2017; however, citizens continue to use them, effectively sidestepping legal restrictions. This ongoing usage likely influences the central bank's interest in providing a regulated digital alternative.

In its CBDC exploration, the Moroccan central bank is collaborating with the IMF and the World Bank to thoroughly assess the potential impacts on the existing payment system. Furthermore, Morocco is partnering with the Egyptian central bank and the World Bank to specifically investigate the feasibility of using the CBDC for cross-border transactions.

Last month, Governor Jouahri noted that a draft law concerning crypto assets is currently under review by the finance ministry. This suggests a broader effort to bring digital assets into a regulated framework.

Key Takeaways:

• Morocco's central bank is exploring a CBDC for domestic and international payments.
• The initiative aims to modernize the payment system and provide a regulated alternative to currently banned cryptocurrencies.
• The bank is collaborating with international organizations like the IMF and World Bank to assess and implement the CBDC.
• A draft law is under review that looks to regulate overall crypto assets.