Morocco is poised to revolutionize its economy with the upcoming launch of the e-dirham, a pioneering digital currency intended to modernize financial transactions and enhance monetary security, the African Press Agency (APA) reported.
Bank Al-Maghrib (BAM), Morocco’s central bank, has said this represents a significant step towards “dematerializing” the kingdom’s economy. The e-dirham, as distinct from traditional cryptocurrencies like bitcoin, will operate as a Central Bank Digital Currency (CBDC) using a licensed or private blockchain. Because the currency will be under the Bank’s oversight, speculation risk will be mitigated and stability will be ensured by linking it directly to the Moroccan dirham.
BAM is introducing the e-dirham to reduce the population’s reliance on cash, which currently constitutes 30% of Morocco’s GDP, one of the highest ratios globally. By facilitating digital transactions, the e-dirham will streamline payments and enhance transactional security, as well as minimize risks such as loss, theft, and fraud. Implementing the new currency should also help combat money laundering and corruption through enhanced traceability of transactions.
Globally, the move towards CBDCs is gaining traction. Approximately 130 countries are now exploring similar initiatives. Morocco is joining the ranks of countries like Brazil, Egypt, and Mexico in early-stage research, highlighting the growing interest among central banks to leverage digital currencies for improving financial inclusion and security.
The Bank has recommended that Morocco conduct an effective communication campaign and make substantial efforts in financial education for this new currency to be truly accepted by citizens.
Moroccan users and merchants generally distrust the idea of transaction traceability due to concerns about tax implications, which has slowed the adoption of mobile wallets. To succeed with the e-dirham, the Bank must reassure stakeholders and demonstrate its benefits for transitioning to a secure and inclusive digital economy.
“The e-dirham marks the beginning of a new era for the Moroccan economy, offering unprecedented opportunities in terms of security and financial transparency,” APA reported.