Morocco’s central bank is exploring the potential use of a digital currency to facilitate peer-to-peer and cross-border payments, joining a growing number of countries considering central bank digital currencies (CBDCs).

Bank Al-Maghrib Governor Abdellatif Jouahri said the institution is working with the International Monetary Fund and World Bank to assess how a digital dirham could support faster and cheaper money transfers while ensuring financial stability.

The Moroccan central bank, together with its Egyptian counterpart and the World Bank, is also exploring the use of CBDCs for cross-border transfers, Jouahri said. These efforts are part of a broader push to modernize regional payment systems and reduce transaction costs across African markets.

While cryptocurrencies remain banned in Morocco since 2017, a draft law on crypto assets is currently under review by the Ministry of Finance before entering the adoption process, according to the central bank chief. The proposed legislation is expected to lay the groundwork for regulating digital assets, including potential CBDC issuance.

Earlier this year, Morocco joined the Pan-African Payment and Settlement System (PAPSS), which facilitates real-time transactions in local currencies across member states. Bank Al-Maghrib also set up a CBDC committee in 2021 to assess the long-term implications of issuing a sovereign digital currency.