The Central Bank of Morocco has established a dedicated committee to study the prospects for issuing its own central bank digital currency (CBDC). Morocco World News reports.
According to the report, regulators are taking a cautious approach to the issue due to the ‘speculative nature’ of cryptocurrencies. Experts should analyse the advantages and drawbacks of CBDCs for the local economy.
What is central bank digital currency (CBDC)?
Previously, Moroccan authorities expressed concern about the lack of regulation in the industry. In their view, the use of digital assets poses risks to users.
In 2017, the financial regulator banned Bitcoin transactions within the country.
Back in October 2020, the Bahamas launched a sovereign digital currency named Sand Dollar. Mastercard announced the launch of a prepaid card backed by the asset.
The Reserve Bank of India has also shown interest in CBDCs — recognizing the growing popularity of cryptocurrencies and began studying the potential of the digital rupee.
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