Morocco Plans Legal Framework for Crypto and CBDC

• Morocco drafts a law to regulate crypto use and explores CBDC for financial inclusion.
• Binance supported earthquake-affected Moroccans in 2023, showcasing the humanitarian potential of cryptocurrency.

Morocco is taking important strides toward regulating cryptocurrency, with central bank governor Abdellatif Jouahri confirming that a draft law on the subject is presently being adopted. The nation has experienced an underground explosion in the use of cryptocurrencies since their ban in 2017 as people and companies get around limits to access these digital assets, according to Reuters.

Morocco: Regulatory Push for Crypto Innovation and Stability 

The proposed legislation seeks to provide a framework for regulated and legal usage of crypto, balancing the demand for innovation with the requirement of financial stability. Concurrent with this is Bank Al Maghrib, the central bank, investigating the viability of introducing a central bank digital currency (CBDC).

Unlike decentralized cryptocurrencies, a CBDC is meant to serve public policy objectives, including enhancing financial inclusion and lowering illegal activity and stays under central bank authority.

This evolution fits world trends since many countries are turning to digital currencies as a means of modernizing their financial systems. The governor of Morocco’s central bank, Abdellatif Jouahri, stated:

“Regarding central bank digital currencies, and like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion.”

Driven by the need for alternative financial solutions, cryptos have kept flourishing in Morocco’s underground economy despite their ban. Lack of a formal regulatory structure has given chances for abuse, but it also shows popular desire in implementing fresh financial innovations.

Morocco’s government wants to embrace technological developments while nevertheless providing transparency, consumer protection, and stability of its financial system by implementing a thorough regulatory framework.

Particularly in sectors like cross-border payments, remittances, and decentralized finance (DeFi), this choice also indicates Morocco’s awareness of the larger possibilities of digital currencies.

Nevertheless, the success of this program will probably rely on the government’s capacity to carry out sensible rules and answer public worries on privacy and security. The draft law will be important to reconcile keeping control over monetary policy with encouraging creativity as it develops.

Previously, CNF reported in 2023 that Binance Charity has given consumers impacted by the Moroccan disaster $3 million in Binance Coin (BNB). Binance also gave $10 worth of BNB to active traders all over, therefore extending help outside of the impacted areas.