Morocco is moving towards an ambitious scheme to dematerialise its economy with the introduction of the e-dirham. to ease transaction and improve monetary security.
The central bank, Bank Al-Maghrib (BAM), is set to transform the kingdom’s financial exchanges with the imminent launch of e-dirham, a new digital currency. This initiative is part of an ambitious project to modernise financial transactions and reduce reliance on cash, which is one of the highest in the world at 30 percent of GDP.
In addition to facilitating payments, the e-dirham will also enhance the security of transactions by minimising the risk of loss or theft. But its role doesn’t stop there: it will also be a powerful tool in the fight against money laundering, corruption and fraud, thanks to improved payment traceability.
It should be noted that e-dirham is different from traditional cryptocurrencies such as bitcoin. In fact, e-dirham will be a Central Bank Digital Currency (CBDC) that uses a licensed or private blockchain, unlike cryptocurrencies that rely on unregulated public blockchains. This distinction is important because it means that the e-dirham will be under the control of the Central Bank of Morocco, limiting the risks of speculation and ensuring relative stability, as this new currency will be directly linked to the Moroccan dirham.
Around the world, some 130 countries are exploring the possibilities of MNBCs. Some, such as Brazil, are well advanced, while others, including Morocco, Egypt, Mexico, the United States, Russia, and Turkey, are in the early stages of research. This clearly shows the interest of central banks in these digital currencies, which are seen as a potential solution to improve financial inclusion and enhance transaction security.
For Morocco, the e-dirham is a key element of its financial inclusion strategy. However, in order for this new currency to be truly accepted by citizens, it will be important to conduct an effective communication campaign and make substantial efforts in financial education. Such efforts are necessary if the e-dirham is not to suffer the same fate as the mobile wallet, which failed to gain widespread acceptance.
Another major challenge is overcoming the distrust of Moroccan users and merchants, who are often concerned about the tax implications of transaction traceability. This fear has already slowed the adoption of mobile wallets. The BAM will therefore need to reassure and prove the benefits of e-dirham if it is to make a success of this transition to a more 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. It remains to be seen whether Moroccan citizens and merchants will seize this opportunity and put their trust in this new technology.
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