Morocco Proposes Legislation For Cryptocurrency Regulation
Morocco is drafting a bill to regulate crypto assets in line with the recommendations made during the last G20 Summit.
By Anna B Kiwanuka
The Governor of the Moroccan central bank “Bank Al-Maghrib (BAM)” Abdellatif Jouahri, announced in Rabat on Tuesday that Morocco is in the process of drafting a bill to regulate crypto assets, aligning with the recommendations from the recent G20 Summit.
Jouahri highlighted that the primary aim of this legislation is to bring Moroccan regulations in line with international standards for crypto assets. This move is designed with a meticulous approach, intending to safeguard investors and ensure the stability of the financial system. He conveyed this during a press briefing following the conclusion of the BAM Board’s fourth quarterly meeting for 2023.
BAM is actively advancing its initiatives concerning the National Currency of the Central Bank (MNBC), with a dedicated working group collaborating closely with technical experts and the International Monetary Fund (IMF) on this endeavor, Jouahri explained.
A current report under review at BAM focuses on the potential utilization of MNBC to enhance financial inclusion, a pivotal aspect for developing nations. Jouahri emphasized the potential of MNBC in enhancing traceability, reducing transaction costs, and streamlining transaction times.
Additionally, Jouahri revealed Morocco’s contemplation of the next phase in the dirham currency reform, allowing for increased fluctuation against the Euro and the Dollar. He outlined the bank’s plan to allocate 8% of its hard currency reserve to finance environmentally friendly projects. He also projected that by 2024 and 2025, foreign exchange reserves would cover 5 months and 16 days of imports.
In the meeting, the central bank opted to maintain its key rate at 3% amid a context of decreasing inflation and improved growth rates.