The central bank of Morocco, Bank-Al-Maghrib (BAM), has begun work on its central bank digital currency (CBDC) project. The bank has set up a committee tasked with looking into how the operations of the digital currency could be an advantage for the African country‘s economy. This was according to a report filed by a local media house in the country.
According to the report, the bank’s committee would have to look for the advantages and the disadvantages attached with implementing the CBDC project. The report also went on to state that the apex bank was taking all necessary precaution due to the speculative nature of the crypto industry.
Notably, financial regulators in the country had hitherto banned cryptocurrencies citing the lack of regulations concerning its use while also adding that its usage poses a level of threat to users. However, despite this ban, Morocco only sits behind Nigeria, South Africa and Kenya in Bitcoin trading volume, which indicates that Moroccans have continued to assiduously use cryptocurrencies.
Governments across the world have been making considerable efforts to develop their CBDC project. China leads the pack with its Digital Yuan project that has undergone different test phases. Other countries like Russia, Sweden, Japan etc have also made progress in the development of a national digital currency.