Morocco is moving closer to regulating cryptocurrencies, according to Abdellatif Jouahri, the governor of the central bank, Bank Al Maghrib. This development marks a significant shift in the country's stance on digital currencies, which have been banned in Morocco since 2017.

Despite the ban, about 3.1% of Morocco's population owns some form of digital currency, with users finding innovative ways to navigate around the restrictions. The proposed regulation aims to address the challenges and opportunities posed by crypto in the country, according to Jouahri.

Jouahri made the announcement during an international conference in Rabat on Tuesday, where he revealed that a draft law aimed at regulating crypto assets is currently in the adoption process. This move is seen as a significant step towards embracing the potential of digital currencies in Morocco.

In addition to regulating crypto assets, Bank Al Maghrib is also exploring the possibility of introducing a central bank digital currency (CBDC). Jouahri noted that a CBDC could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion. A CBDC is controlled by the central bank, in contrast to cryptocurrencies, which are usually decentralized.

The development in Morocco is part of a larger trend in Africa, where many governments have struggled to come to terms with the rise of digital currencies. Despite bans and restrictions, cryptocurrency adoption continues to grow, with many users turning to peer-to-peer trading platforms to bypass restrictions in the financial sector.

For example, Nigeria received around $59 billion in cryptocurrency value between July 2023 and June 2024, earning it a spot as the only African country in this year's Global Top 20 ranking. This highlights the potential of digital currencies to drive financial inclusion and economic growth in Africa.

The move towards regulating crypto assets in Morocco is likely to have significant implications for the country's financial sector and economy. It could pave the way for greater adoption of digital currencies, increased financial inclusion, and new opportunities for businesses and individuals. As the regulatory landscape continues to evolve, it will be important to monitor developments in Morocco and other African countries.

In conclusion, Morocco's decision to regulate crypto assets marks a significant shift in the country's stance on digital currencies. As the regulatory environment continues to evolve, it will be important to watch how this development impacts the country's financial sector and economy, as well as its implications for the broader African continent.