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Rabat – Despite the current nationwide ban on holding and trading in cryptocurrencies, ownership is on a steady rise in Morocco, going from 2.4% in 2021 to 3.1% in 2022, the highest rate in North Africa.
Crypto ownership is largely concentrated among the male population aged between 16 and 44, according to a recent report by DataPortal on the status quo of crypto adoption worldwide.
As of early August 2022, holding and trading in cryptocurrencies in Morocco is punishable by law under an official decree.
Despite the ban, Morocco’s central bank, Bank Al-Maghrib (BAM), announced in recent months entering into talks with the IMF and other countries to establish a regulatory framework that could pave the way for future adoption.
BAM went as far as to say that it is currently considering the possibility of issuing its own central bank currency.
Commenting on Morocco’s approach to handling the rising trend of crypto adoption, a recent analysis by the Moroccan Institute for Policy Analysis (MIPA) concluded that Morocco is enacting a “wait and see” strategy amid “fear” of losing control over economic and monetary sovereignty.
Read Also: Morocco’s ‘Wait and See’ Crypto Strategy Reflects Fear of Capital Flight
The think tank argues that the decentralized nature of the crypto assets poses a significant threat to Morocco’s central bank and the country’s banking sector as key players in the ecosystem.
As adoption gains more momentum, said MIPA’s analysis, Morocco’s financial watchdogs are facing increasing pressure to provide a legal framework governing crypto-related operations.
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 are not constrained with geographical boundaries.
The think tank noted that while Morocco’s central bank seems to be treading with caution in regards to crypto adoption, the country’s economy has “a lot to gain” from the technology.
