Bank al-Maghrib is exploring the possibility of using digital currencies, its Governor Abdellatif Jouahri announced at the roundtable on Central Bank Digital Currencies entitled 'The Role of the Public Sector in Money and Payments - A New Vision', held earlier this week in Marrakech.
During the discussion, the Bank's chief noted that unlike cryptocurrencies - which have always been seen as an attempt at decentralization - the type of currency he has in mind is issued by central banks and subject to regulations.
"The complexity and challenges associated with CBDC [Central Bank Digital Currencies] products highlight the need to continue and deepen the debate," said Jouahri.
He added that many central banks in the region have made progress in exploring the possible use of CBDCs. In particular, he pointed to Morocco, where a special group to examine this issue and provide solutions was created in 2021.
Jouahri explained that although many regulators are cautious about bitcoin, central banks have quickly realized that maintaining the status quo is no longer an option if they want to retain a leading role as currency issuers.
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), who also took part in the roundtable, echoed Jouahri's remarks, emphasizing the need to continue the dialogue on CBDCs. "Gather and share knowledge and information for the benefit of our member countries in Africa, the Middle East, and beyond," the IMF chief said.
"CBDCs could help to increase inclusion by giving more people access to financial services, and at a lower cost, strengthen the resilience and efficiency of payment systems, and make cross-border payments and remittances cheaper and quicker," she added.
However, she stressed, if poorly managed, digital currencies could pose a threat to financial stability, lead to data privacy and legal challenges. Therefore, it was important to weigh all the risks and ensure that digital money fosters domestic and international economic stability.
In recent years, Morocco has witnessed significant growth in the use of cryptocurrencies, becoming the fastest-growing crypto market in Northern Africa. By the end of 2022, the number of crypto holders in the country reached 1.15 million, according to a study by the Policy Center for the New South (PCNS).
However, trading in cryptocurrencies is at present outlawed in Morocco. At the beginning of 2023, the authorities announced that they had finalized a Bill to regulate the crypto market.