Morocco is currently investigating the possibility of issuing a central bank digital currency (CBDC) as a strategic move aimed at modernizing payment methods and enhancing access to financial services. However, this initiative also brings forth significant challenges related to transaction security, personal data protection, and the stability of the banking sector. A working paper published by Bank Al-Maghrib in October 2026, titled "Central Bank Digital Currency: Opportunities and Lessons Learned for Morocco," sheds light on the potential benefits of issuing a digital dirham along with the risks associated with it. The insights are drawn from international experiences, studies, and financial simulations, augmented by technical trials conducted in collaboration with the International Monetary Fund (IMF) and the World Bank.
The paper distinguishes the central bank digital currency from existing electronic payment methods, such as bank transfers and digital wallets, by emphasizing that it constitutes a digital form of the national currency issued directly by the central bank. This digital currency could facilitate transactions that are directly linked to the cash issued by the monetary authority, potentially allowing for its use in everyday payments. This initiative comes at a time when reliance on cash is still prominent in Morocco, as the value of circulating banknotes and coins has surged from 70 billion dirhams in 2001 to over 500 billion dirhams in 2025, according to data presented in the document. The study suggests that the digital dirham could help reduce the costs associated with cash transportation, security, and management, provided that it offers users tangible advantages over currently available options.
Financial Inclusion and the Challenge of the Informal Economy
The document identifies the expansion of financial inclusion as one of the primary objectives for the digital dirham, particularly given that the percentage of individuals with bank accounts reached 62% in 2025. The digital currency could facilitate access to financial services for demographics that face challenges due to high banking service costs or limited coverage in certain areas. However, the study warns that simply introducing a new payment method is insufficient to achieve these goals; its success hinges on user-friendliness, low costs, the availability of digital infrastructure, and public trust in the protection of their funds and personal data.
Moreover, the potential of the digital dirham to mitigate unstructured transactions heavily depends on user adoption and its ability to provide a practical alternative to cash, without the increased monitoring of transactions leading to privacy concerns.
Potential Risks to Banking Financing
One of the significant challenges discussed in the paper is the risk of a portion of bank deposits shifting towards the digital currency if individuals and businesses perceive it as offering greater advantages than traditional bank accounts. This shift could result in increased funding costs for banks and adversely affect their ability to lend. Financial simulations presented in the study indicate that the impact on the banking sector could remain limited if the digital dirham is primarily used for daily transactions and gradually replaces cash. However, if it becomes a direct competitor to deposits, there could be escalating pressures on bank funding and profitability.
To mitigate these risks, the document proposes a model that prohibits interest on digital balances while setting limits on the amounts that can be held or transacted. It also supports a framework where Bank Al-Maghrib issues and oversees the currency, while banks and payment institutions handle its distribution and provide services to users.
On the practical side, the document reveals that Bank Al-Maghrib has tested a prototype in collaboration with the IMF and the World Bank, which included the digital currency's issuance, distribution, and storage in digital wallets, as well as facilitating transfers between individuals and testing integration with existing payment systems. These trials confirmed the initial technical feasibility of the digital currency, though they do not equate to a final decision to issue it. The study emphasizes the need for a clear legal framework, enhanced cybersecurity, data protection measures, and a gradual approach that balances the modernization of payments with financial stability.
Thus, the primary challenge facing Morocco remains defining the added value that the digital dirham could provide compared to current payment methods, and its potential to expand financial inclusion while reducing transaction costs without introducing new risks to economic financing and public confidence in the monetary system.
As reported by thevoice.ma.
