During his participation in GITEX Africa, Abderrahim Bouazza, Director General of Bank Al-Maghrib, announced the start of a feasibility study to evaluate the launch of the e-dirham, the new digital currency that Morocco seeks to introduce with the aim of reducing the circulation of cash. This step comes within the framework of the efforts made by Bank Al-Maghrib to keep pace with global digital developments and enhance the digital economy.
*Motives for introducing the e-dirham*
The volume of cash circulation in Morocco is constantly increasing, prompting monetary authorities to look for innovative solutions to curb this trend. The e-dirham represents a promising solution, as it can provide citizens with a secure and easy-to-use digital alternative, thus reducing the need to use paper money. Through this initiative, Bank Al-Maghrib also seeks to promote financial inclusion and encourage citizens to use digital financial services.
*Challenges and expected benefits*
The introduction of the e-dirham is expected to revolutionize the way financial transactions are conducted in Morocco. By offering a secure and convenient digital alternative, it could reduce reliance on traditional cash, improving the traceability of financial transactions and reducing the risks associated with the informal economy and money laundering.
However, the transition to digital currency faces several challenges, including the need to establish a strong legal and regulatory framework to ensure the safety of the financial system and protect the rights of users. Bank Al-Maghrib has established a special committee to analyze the potential benefits and risks associated with launching digital currency, and to propose the necessary measures to manage the development of crypto-assets.
*Institutional framework for digital currency in Morocco*
With the world witnessing rapid changes in the field of crypto assets and digital currencies, Bank Al-Maghrib recognizes the importance of preparing for these developments. Since the official ban on the use of cryptocurrencies in 2017, Moroccan authorities have been keen to monitor international developments in this field and analyze their potential impact on the country’s economic and financial stability.
In this context, Bank Al-Maghrib has established an institutional framework dedicated to managing the challenges related to the Central Bank Digital Currency (CBDC). This framework includes monitoring international developments, assessing economic and financial risks, and working in collaboration with international financial institutions to exchange knowledge and best practices.
*Promising future prospects*
The introduction of the e-dirham represents a significant step towards strengthening the digital economy in Morocco. With the authorities’ commitment to implementing appropriate regulations and managing risks effectively, this transformation could contribute to significant gains for the national economy. As the use of digital currency expands, it is expected to improve financial transparency and reduce the costs associated with issuing and circulating paper money.
In conclusion, the e-Dirham project reflects Morocco’s commitment to innovation and readiness to keep pace with global developments in the financial sector. If successfully implemented, this initiative is likely to enhance Morocco’s ability to achieve sustainable economic growth and place it at the forefront of countries adopting digital solutions in their financial system.
M SIMO07
