Morocco prepares to launch “e-dirham” digital currency
Morocco is preparing to launch the “e-dirham”, the first kind of digital currency in the country with hopes of reforming its economy and moving away from cash, according to government friendly Hespress on the 13th of July
According to the Rabat based english language website, the “e-dirham” will be administered and overseen by Bank al-Maghrib (BAM), the North African nation’s central bank. This central bank digital currency is different from others such as bitcoin in that it removes speculative risks that are often linked with decentralized digital currencies.
Presently, cryptocurrency trading in Morocco, technically speaking, is illegal as banks do not support payment mechanisms used by platforms such as Bitcoin.
Currently, cash makes up 30% of the Moroccan GDP, where unemployment rates have risen to 13.7% in the first quarter of 2024 due to catastrophic events such as droughts. Through the e-dirham, the government aims to reduce the risks associated with petty cash such as being stolen or getting lost as well as to streamline financial transactions.
READ: Morocco: expected 2.4% in growth in beginning of 2024
As part of the e-dirham’s second phase, BAM has conducted “Proof of Concept” trials where they evaluated the digital currency’s actual usage and application. They also simulated different scenarios of payment to test the e-dirham’s efficiency.
The success of the e-dirham relies on Moroccan consumers and businesses putting their trust in this new digital currency and moving away from the well-accustomed cash. BAM is also striving to address concerns of user distrust and taxation in their comprehensive analysis and development, Hespress explains.
Morocco is among the 130 or so countries that are actively exploring central bank digital currencies. Egypt and Turkey are also among the ranks, though they are still in the early stages of research and development.
With its economy heavily reliant on agriculture, Morocco is still recovering from a six-year drought that has led to a violent decrease in arable land. The kingdom has also taken active steps to diversify its economy, such as attempting to grow its aeronautics industry and even joining the global cannabis market.
We cannot verify any of the information in this article as it was based on a report from an outlet which Maghrebi considers to not be objective when reporting on Morocco.
Hespress
