Morocco’s central bank to investigate the use of CBDC

Morocco’s central bank Bank-Al-Maghrib (BAM) has announced is investigating the benefits of launching a central bank digital currency (CBDCs).

BAM has launched an exploratory committee to investigate the pros and cons of a CBDC four years after banning cryptocurrencies. Morocco’s central bank is continuing to take a cautious approach due to the ‘speculative nature’ of cryptocurrencies.

BAM’s new committee will seek to identify and analyse the advantages and drawbacks of CDBCs for the Moroccan economy. Previously Morocco has expressed concern around the lack of regulation around cryptocurrencies and warned the use of virtual currencies entails significant risk for users.

Although Bitcoin was banned for use in Morocco four years ago, the cryptocurrency continues to thrive in the country, with only Nigeria, South Africa and Kenya being the only African countries to trade more bitcoins.