Bank Al-Maghrib explores feasibility of a digital dirham

Bank Al-Maghrib is researching the feasibility of a digital dirham, a central bank digital currency (CBDC) intended to complement rather than replace physical cash in Morocco. Research conducted with support from the International Monetary Fund and the World Bank has validated the technical feasibility of a digital currency for the general public.

The proposed model utilizes a two-tier hybrid architecture where the central bank manages issuance, while commercial banks and payment institutions handle distribution and user management. This structure aims to preserve the role of existing financial intermediaries.

Challenges include managing an economy where cash usage remains high, with physical currency in circulation exceeding 500 billion dirhams in 2025. To mitigate risks such as the mass transfer of bank deposits to the central bank—which could reduce credit resources and disrupt monetary policy—researchers suggest a cautious implementation. This would include making the digital currency non-interest bearing and imposing limits on holdings and transactions to encourage use for payments without siphoning liquidity from the banking sector.