Bank Al-Maghrib Experiments with Two Use Cases for Its Future Digital Currency

Bank Al-Maghrib is continuing its exploration of a Central Bank Digital Currency (CBDC) through two concrete experiments, announced the Governor of the central bank at the opening of the continental seminar of the Association of African Central Banks (ABCA), held in Rabat under the theme 'Cyber Risks and Innovative Financial Technologies.' The first experiment, already completed, focused on a peer-to-peer retail payment use case. This phase assessed the usability of a sovereign digital currency in transactions between individuals, with a focus on accessibility, security, and efficiency. The second experiment, currently underway, targets cross-border payments, in partnership with the Central Bank of Egypt and with the support of the World Bank. It aims to test the feasibility of digital exchanges between African central banks as part of a broader goal of regional financial integration. The Governor of Bank Al-Maghrib noted that studies have been conducted, with support from the World Bank and the IMF, on issuing a CBDC. These efforts primarily focused on defining the strategic objectives of the digital currency, as well as its potential macroeconomic impacts and effects on payment systems. These projects are part of a gradual approach. Additional legal and regulatory studies are planned to lay the foundation for a possible large-scale rollout. Bank Al-Maghrib aims to anticipate technological developments while preserving the stability of the financial system. Furthermore, Governor Abdellatif Jouahri stated that Morocco has just finalized a draft law to regulate the use of crypto-assets. The law aims to (i) protect consumers and investors, (ii) strengthen market integrity against fraud, money laundering, and terrorism financing, and (iii) preserve financial stability.