Bank Al-Maghrib prepares for launch of e-Dirham, Morocco's first digital currency

Morocco’s central bank Bank Al-Maghrib (BAM) is gearing up for the imminent launch of the e-dirham, a digital version of the Moroccan dirham aimed at modernizing the country’s financial system and reducing reliance on cash, which currently makes up 30% of GDP, one of the highest rates globally.

The e-dirham initiative is poised to streamline financial transactions and bolster security by minimizing the risks associated with physical cash, such as theft or loss.

Designed as a Central Bank Digital Currency (CBDC), unlike cryptocurrencies like Bitcoin, the e-dirham will be issued and overseen by BAM. This approach aims to ensure stability and mitigate the speculative risks often linked with decentralized digital currencies.

Morocco joins more than 130 countries exploring CBDCs, with varying stages of progress. While countries like Brazil are advancing, others such as Egypt, Mexico, the United States, Russia, and Turkey are in the early phases of research and development.

Enhancing financial inclusion is a primary objective behind the e-dirham’s introduction. BAM acknowledges the importance of effective communication campaigns and robust financial education programs to foster widespread adoption. Previous efforts with mobile wallets faced challenges, including user distrust and concerns over tax implications, limiting uptake.

The success of the e-dirham hinges on BAM’s ability to address these concerns and demonstrate the benefits of digital currency. It marks a new era of enhanced security and transparency, yet its long-term viability will rely on Moroccan citizens and merchants embracing this technological shift.

BAM conducted trials, termed “Proof of Concept,” as part of the e-dirham project’s second phase. These trials evaluated the currency’s practical application, following initial testing in installment payments to assess operational efficiency across various payment scenarios.