Morocco digital dirham feasibility research

Bank Al-Maghrib is researching the feasibility of a digital dirham, a central bank digital currency (CBDC) intended to complement Morocco’s existing monetary system and physical cash. In collaboration with the International Monetary Fund and the World Bank, researchers have completed technical tests demonstrating the feasibility of issuing and distributing digital currency via electronic wallets using both centralized and distributed ledger architectures.

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 is designed to preserve the role of existing financial intermediaries.

While the project could enhance financial inclusion and streamline international transfers, several challenges remain. Researchers have identified risks regarding cybersecurity, data privacy, and financial stability. Specifically, there are concerns that a mass migration of bank deposits to the digital currency could reduce credit resources and disrupt monetary policy. To mitigate these risks, researchers suggest a cautious implementation, potentially including making the currency non-interest bearing and imposing limits on holdings and transactions.