Rabat – Morocco has adopted a “wait and see” approach when dealing with cryptocurrencies, reflecting the country’s “fear” of losing control over its economic and monetary sovereignty, experts have argued.
According to a new report by the Moroccan Institute for Policy Analysis, the decentralized nature of cryptocurrencies threatens to disrupt the role of Morocco’s central bank and the country’s banking sector as safe keepers of the national economy.
Adopting crypto-based monetary transactions would also mean that Morocco’s central bank would have little control over capital flight, given that transactions on the blockchain lack geographical boundaries.
As of July 2022, using cryptocurrencies is punishable under an official decree.
Morocco’s reluctance to adopt the digital assets, however, has been met by a population that is increasingly involved in the crypto space and is actively using it to paypass “conservative” monetary policies.
Morocco ranks 24th globally and first in crypto transaction volumes within the North Africa region, according to data cited in the report.
The number of crypto holders is set to grow, exercising pressure on regulators to manage the industry without stifling innovation, which would only hurt the Moroccan economy.
Morocco’s monetary watchdog currently authorizes MAD 40,000 ($4,000) in travel expenses and only MAD 15,000 ($1500) in online purchases from international marketplaces.
According to the Moroccan Institute for Policy Analysis, Moroccan crypto holders use these vehicles to both invest and speculate within the crypto space, collecting the high returns the space offered to early adopters, the report explains.
The Moroccan think tank further argues that Morocco has “a lot to gain” from the emerging technology.
As it fears the potential of crypto to disrupt and displace its role in the national economy, Morocco’s overly cautious banking sector is currently impeding the widespread adoption of cryptocurrencies in the country.
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