Rabat – Despite government skepticism and nationwide bans of cryptocurrency, worldwide adoption of digital currencies is at an all-time high, and Morocco is no exception.
With cryptocurrency ownership reaching 2.4% of Morocco’s population, Bitcoin trading in the country is the highest among North African countries in 2021, according to Triple, a cryptocurrency research platform.
With cryptocurrency trading reaching $6 million in Morocco in 2021, the country is the fourth largest trader of cryptocurrency on the African continent, behind Nigeria, South Africa, and Kenya.
Unhinged by the COVID-induced economic crisis, cryptocurrency ownership in Morocco reached all-time high levels in 2020, reaching $2.18 million.
Despite Morocco’s ban on cryptocurrency, Bitcoin purchasing is soaring in the country, with peer-to-peer trading reaching record-high levels on LocalBitcoins, a trading platform, in February 2021.
Moroccans traded a volume close to $900,000 in bitcoin during February alone. With a 30% year-to-year increase in registration on the LocalBitcoins trading platform, cryptocurrency adoption is gaining momentum through a base effect.
Experts report that the rise in peer crypto trading is driven by curiosity as well as FOMO (Fear Of Missing Out). While some traders are benefiting from the rising speculative value of digital currencies, others view cryptocurrencies as a bank-free form of trading.
Morocco’s Exchange Office, the country’s foreign exchange watchdog, banned trading in cryptocurrencies in 2017, regarding them with skepticism. However, the Moroccan Central Bank, BAM, announced that its board was in the process of deliberating the economic benefits of adopting cryptocurrencies.
Governments around the world are now exploring the benefits of using blockchain-backed cryptocurrencies, with countries like Ecuador already adopting digital currencies.
The intractability of these currencies and their widespread use in cyber crimes will linger as a source of concern for individuals and governments in the foreseeable future.
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