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Morocco moves up a gear

LAt the Africa Financial Summit (AFIS) 2024 in Casablanca, the Minister of Economy and Finance, Nadia Fettah, affirmed that cryptocurrencies could play a key role in expanding access to financial services. “These tools, despite their risks, can be levers to strengthen financial inclusion, particularly in rural areas where the banking offer remains limited,” she underlined. This position marks a significant evolution in the official discourse, until now dominated by a cautious approach.

Morocco, thanks to its national financial inclusion strategy, has already made notable progress. But cryptocurrencies could fill structural gaps by opening up new perspectives, provided that a robust regulatory framework is built to limit abuse and abuse. This ambition is also materialized by a bill governing cryptoassets, currently in the adoption circuit, as recently recalled by the wali of Bank Al-Maghrib (BAM). This text, developed in collaboration with the World Bank and other national partners, aims to reconcile user protection and encouragement of innovation. At the same time, Bank Al-Maghrib is also exploring digital central bank currencies (MDBC). This project, launched three years ago, aims to assess their potential for modernizing payment systems and strengthening financial inclusion. An approach which illustrates the authorities’ desire not simply to follow the global trend, but to adopt a thoughtful approach adapted to local needs.

A craze despite the restrictions

Although cryptocurrencies have been officially banned in Morocco since 2017, citizen interest has not waned. According to the Geography of Cryptocurrency 2023 report from Chainalysis, Morocco ranks 20th in the world in terms of adoption of cryptocurrencies, a decline from the previous 14th place, but which remains impressive given legal constraints.

Additionally, the Kingdom records the highest value of crypto transactions in the MENA region, surpassing countries like Algeria and Egypt. Data from 2022 reveals that 4.9% of Moroccans held some form of cryptocurrency, placing the country among African leaders in terms of adoption. According to Insider Monkey, Morocco is also 13th in the world for the use of bitcoin, proof of persistent enthusiasm for these assets. If the adoption of cryptoassets is well underway, the challenge lies in establishing balanced regulation. This is not only about protecting users, but also ensuring harmonious integration with traditional financial systems.

According to Badr Bellaj, expert in cryptocurrencies and blockchain, future regulations should draw heavily on already existing models, with the establishment of licenses for entities offering crypto services through strict conditions. By adopting the Pacte law in 2019, was one of the first states to have defined the notion of “digital asset” and to have regulated certain essential subjects linked to the ecosystem of blockchain technology and digital assets. The Moroccan strategy seems clear: integrate cryptocurrencies into the economy, but under control.

Unlike other countries where regulation remains vague or unsuitable, Morocco wishes to lay the foundations of its own model, combining innovation and security. The real test for Morocco will be to articulate this ambition with the expectations of investors and the rapid developments of a highly speculative market. What if in a few years Morocco became a regional reference in terms of cryptocurrencies? A question which, until yesterday, was a matter of speculation. But today, given the signals sent by the government and Bank Al-Maghrib, it could well be a serious hypothesis.

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