Morocco's Central Bank Explores Digital Currency for Cross-Border Payments
The Moroccan central bank is considering the implementation of its own digital currency for peer-to-peer and cross-border transactions, as the institution aims to assess potential impacts on payment systems.
RABAT: The Central Bank of Morocco is currently investigating the utilization of a central bank digital currency (CBDC) for facilitating peer-to-peer and cross-border payments.
This initiative was announced by the governor, Abdellatif Jouahri, during a conference held in Rabat on Monday.
A CBDC is distinguished from cryptocurrencies as it is centrally managed by the country's monetary authority rather than operating on a decentralized network.
The use of cryptocurrencies has been prohibited in Morocco since 2017; however, their circulation persists within the underground economy, bypassing official restrictions.
The central bank is collaborating with international organizations such as the International Monetary Fund (IMF) and the World Bank to evaluate the implications that adopting its own CBDC would have on the country's payment systems.
In addition to exploring domestic applications, Morocco's central bank, alongside its Egyptian counterpart and the World Bank, is examining the potential of CBDC for enhancing cross-border money transfers.
Recent developments include a draft law concerning crypto assets which is currently under review by the Ministry of Finance before proceeding to adoption.
The Moroccan government's interest in digital currencies reflects a growing global trend among central banks to consider such innovations as a means to optimize financial transactions and enhance the efficiency of monetary systems.
This initiative was announced by the governor, Abdellatif Jouahri, during a conference held in Rabat on Monday.
A CBDC is distinguished from cryptocurrencies as it is centrally managed by the country's monetary authority rather than operating on a decentralized network.
The use of cryptocurrencies has been prohibited in Morocco since 2017; however, their circulation persists within the underground economy, bypassing official restrictions.
The central bank is collaborating with international organizations such as the International Monetary Fund (IMF) and the World Bank to evaluate the implications that adopting its own CBDC would have on the country's payment systems.
In addition to exploring domestic applications, Morocco's central bank, alongside its Egyptian counterpart and the World Bank, is examining the potential of CBDC for enhancing cross-border money transfers.
Recent developments include a draft law concerning crypto assets which is currently under review by the Ministry of Finance before proceeding to adoption.
The Moroccan government's interest in digital currencies reflects a growing global trend among central banks to consider such innovations as a means to optimize financial transactions and enhance the efficiency of monetary systems.
