ZoneBitcoin EditorialThe case of the Kingdom of Morocco is somewhat particular because we observe a dichotomy between a population increasingly interested in cryptocurrencies and a government which seeks to limit its progress in the kingdom. Many countries are experiencing this ambivalent situation, which can be explained by the fact that it is a new technology which is constantly evolving and for which it is not easy to measure the benefits (or negative consequences) in the event of adoption in the country.
Authorities in Morocco “banned” the use of cryptocurrencies in 2017, but it seems that since then, the government has been leaning towards a more tolerant policy towards cryptocurrencies. The government is indeed working on a central bank digital currency (NBDC) for a digital version of the Moroccan dirham.
Morocco is among the 10 African countries recording a strong growth in cryptocurrency holders. According to the study published by the Think tank " Policy Center for the New South (PCNS), more than 1,15 million Moroccans own cryptocurrencies in 2022, a figure that is constantly increasing.
The emergence of cryptocurrencies in Africa: reality or overvaluation? by Henri-Louis Vedie
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This indicates that the Moroccan population is showing its growing interest in cryptocurrencies despite the limits imposed by the authorities to reduce their uses within the kingdom.
Moroccans are among the populations that own the most cryptocurrencies
Judging by the queries searched on Google, the Moroccan population is increasingly interested in bitcoin and cryptocurrencies. Peer-to-peer platforms are recording a significant increase in Moroccan users. According to Chainalysis, Morocco is ranked in 14th place in terms of adoption of cryptocurrencies and it is the first in North Africa.
Thus, despite the ban on the use of cryptocurrencies in Morocco, Moroccans continue to obtain cryptocurrencies for personal purposes. The Moroccan population is the 6th in terms of % of people owning cryptocurrencies in Africa with 3% of the Moroccan population owning cryptocurrencies. The top 5 populations that own the most cryptocurrencies are Nigeria, South Africa, Kenya, Egypt, Tanzania, DR Congo,Ethiopia and Ghana.
The author Henri-Louis Verdie of Policy Center for the New South, recalls that the ban on the use of cryptocurrencies has very little (or no) effect on the ground. Countries like Nigeria and Morocco are, in fact, "two countries that have seen the number of their cryptocurrency holders increase in recent months."
This is explained by the fact that it is very difficult, if not impossible, to prevent the purchase of bitcoin because no authority can control or master the network. Thus, each user can obtain it, on peer-to-peer platforms, for example, which are open to all people, without geographical restrictions of any kind. And, if a country were to ban a site in a given territory, the use of a VPN would make it possible to circumvent the ban…
Bitcoin is an alternative for Moroccans who wish to access financial services
Generally, bitcoin is the dominant and most popular and sought-after cryptocurrency in Africa. The ban on the use of cryptocurrencies does not stop Moroccans in their desire to obtain bitcoin. Among bitcoin holders in Morocco, the majority are young people between 20 and 30 years old living in the largest urban cities in the kingdom, with Casablanca, Rabat and Marrakech at the top of the list.
Young people under 30 represent more than 50% of bitcoin users, according to a recent study called Synergia, according to the newspaper Morocco Diplomatic, which specifies that the country is on the " path to regularization of cryptocurrencies"
This enthusiasm for cryptocurrencies and for bitcoin can be explained in particular by the fact that only 53% of the Moroccan population has a bank account. Certainly, the country is one of the most banked countries in the region, but this nevertheless reflects that a large part of the population does not have access to basic financial services.
In this context, as is the case in many other countries in Latin America or Africa, bitcoin then appears to be an ideal alternative for this population. Bitcoin and cryptocurrencies are also widely used for international payments, allowing a drastic reduction in money sending costs for companies like Western Union, for example.
Why regulation of cryptocurrencies is necessary in Morocco?
Obviously, despite the intricacy of the use of cryptocurrencies does not work and does not have the expected effects. The advantages of using cryptocurrencies are greater for Moroccans who can benefit from them in different ways and in particular to make payments more quickly and more economically.
By prohibiting the use of cryptocurrencies, countries are indirectly prohibiting the use of blockchain although they are two independent activities. Thus, banning cryptocurrencies amounts to stifling the emergence of companies working in the digital sector.
However, this is indeed a new technology which provides great flexibility for the creation of digital businesses, an undeniable vector of growth in the contemporary global economy.
Beyond the benefits perceived by individuals, a law that regulated cryptocurrencies in Morocco could benefit many industries. By allowing cryptoassets, the kingdom could attract foreign capital as well as institutional investors. Many entrepreneurs would be allowed to create countless businesses based on new crypto technologies.
The creation of jobs, the establishment of new digital structures, the strengthening of the attractiveness of the region, the ease for Moroccan companies to trade with other international companies represent only some of the advantages of the use of blockchain which could benefit the country.
Morocco is moving towards regulating cryptocurrencies
Thus, with formal regulation, countries can set limits and establish clear frameworks that can encourage the creation of new businesses while limiting illicit practices. Only a regimental framework can act in this way and bring positive externalities for a country. This is also why more and more countries are adopting laws " crypto-friendly", in order to be able to benefit from this financial windfall that the blockchain sector represents.
So the governor Abdellatif Jouahri of Bank Al Maghrib (BAM) has decided to act in this direction also by proposing the potential issue of a Central Bank Digital Currency (MNBC).
Furthermore, there are regular conferences and events related to Fintech and blockchain which are organized by the numerous investors and entrepreneurs based in Morocco. Recently, the Binance exchange platform has organized a meeting with bitcoin supporters, showing his intention to eventually settle in the country. Binance is the leading cryptocurrency exchange platform in terms of trading and it is increasingly present in Africa. The platform is seeking to establish itself in Morocco, which is among the countries experiencing stronger growth in terms of adoption of cryptocurrencies.
—>Read the article: Which countries have launched their MNBCs and those who are working on them?
FAQ about Bitcoin in Morocco
How to buy bitcoin in Morocco?
To buy bitcoin in Morocco, Moroccans use different platforms including peer-to-peer platforms where it is possible to buy bitcoin or USDT from other people (individuals and businesses). Many bitcoin sellers who accept Moroccan dirham (MAD) on the platform.
It is also possible to buy bitcoin with Moroccan dirham directly, with different payment methods. Space P2P on Binance is the platform that offers the most payment options, such as local bank transfers and by euro or dollar currency account, card payments like Neosurf, skrill etc.
How to buy bitcoin in Morocco with Moroccan dirham?
It is possible to buy bitcoin in Morocco with Moroccan dirham on peer-to-peer platforms like BinanceP2P where it is possible to buy them directly from people who sell them. The platform is popular in Morocco because Moroccans can buy bitcoin with different payment methods, such as bank transfers for example.
What exchange platforms do Moroccans use?
In Morocco, residents buy bitcoin on exchange platforms classics which accept Moroccan residents. These are then the sites to buy bitcoin for Africans in general which are naturally the most used by Moroccans.
We find platforms like Binance, which accept Moroccan residents as well as the platform Bybit, OKX or even Kucoin. The platform bybit is particularly popular with Moroccan cryptocurrency traders.
Why are cryptocurrencies banned in Morocco?
Today, the government has not decided on new regulations and transactions in virtual currencies are prohibited in the kingdom and constitute an offense. Similarly, Moroccan residents do not have the right - except under certain conditions (having an export company, among others) - to have a bank account abroad, under penalty of being liable to a fine ranging from 500 to 20 dirhams.
According to the Ministry of Economy and Finance, this ban was implemented to protect Moroccans against the volatility of exchange rates and to prevent the financing of illicit or criminal activities (terrorist financing, balance of capital, etc. ). It is therefore a law which primarily aims to protect the population but which encounters limits in its application.
Is Binance authorized in Morocco?
The Binance platform is not authorized to set up in Morocco, under the current legal framework of Morocco regarding the legislation on cryptocurrencies. However, there was a physical meeting organized by Moroccan bitcoiners in order to introduce the platform to Moroccans. The platform opened a section " Binance in Africa » in which mini-training sessions, meetings and competitions are organized.
How to invest in bitcoin in Morocco?
To invest in bitcoin from Morocco, you must use platforms that accept Moroccan citizens. Many platforms like Paxful allow Moroccans to buy bitcoin with Moroccan dirham. Likewise, Moroccans can use platforms like Binance, OK ou bybit to be able to carry out trading or other financial activities from Morocco.
However, you should know that Moroccan legislation prohibits the use of cryptocurrencies within the kingdom. Thus, the Moroccan who wishes to invest in bitcoin must be aware of the risks involved.
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Note: This item is not a financial investment. It is important to understand the risks of investing in cryptoassets and all financial products.
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