Morocco’s Central Bank gearing up digital currency

As many Western societies are going paperless and cashless, several central banks across the world started testing digital money to assess the risks and benefits of cryptocurrency, a global market spurred by Covid-19 restrictions in emerging economies particularly in Africa and Asia.

Sensing the growing importance of decentralized digital currency with the evolution of Information & Communications technologies, Bank Al-Maghrib, Morocco’s central bank, sealed on Wednesday a partnership agreement with the National Telecommunications Regulatory Agency (ANRT).

Under this agreement, the two parties pledged to exchange data and know-how in crypto-asset trading platforms which are becoming increasingly popular.

The signatories also agreed to cooperate in digital banking services and innovative payment solutions. This cooperation will allow both institutions to benefit from technological developments in the fields of information and digital infrastructure.

Some European central banks are studying the possibility of issuing their own digital currency which would be used by households and businesses for their everyday payments needs. It would exist alongside cash and bank deposits, rather than replacing them.

The studies are focusing on the merits of virtual money, its cost, the privacy issues, the operational & technological model as well as the implications for users and businesses.