Introduction

The crypto world has been one giant roller coaster globally ever since it started producing millionaires, with investments mounting to only a couple of hundred dollars. Not only did the people understand the potential of making money trading in cryptocurrency, but tech enthusiasts were impressed with the blockchain technology that came with it. Adoption of the new technology, and the abundance of advantages that came with saw many governments adapt to it almost instantly, but for others, things came at a much slower pace. One such government belongs to the country of Morocco, who despite having banned crypto and related activities in 2017, has now changed its views and is implementing ways for its citizens to have access to the crypto space legally.

Why are governments hesitant in allowing access to crypto to its citizens?

Governments are typically hesitant to give their citizens easy access to cryptocurrencies due to the hazards they pose to the economy and individuals. Cryptocurrencies are notorious for their very volatile value, which means that people can quickly make or lose a lot of money, which could affect the economy if it occurs on a wide scale. Governments are concerned that cryptocurrencies, which are not governed by a single authority, may compete with their national currency, making it more difficult to handle things like inflation or interest rates. Furthermore, because crypto transactions are difficult to trace, they may be utilized for unlawful activities such as money laundering or tax evasion, jeopardizing public safety and reducing government funding for essential services.

Despite the major economic challenges the crypto world possesses, perhaps the biggest challenge for governments, especially in third world countries, is the lack of information and knowledge about new technology that its citizens have. Crypto is a significantly new space in the financial sector, and despite being extremely profitable and beneficial for a country, there are still large majorities of populations that are still understanding the ways of conventional banking systems. With the lack of knowledge increases the hazard of scams, and or hacking. All of which will only add to the worries of a government. As most countries are not equipped to handle such drastic change almost instantly, most governments thought best to deny access to its citizens, as a way to create necessary frameworks tailored to problems that may arise specifically for their population.

How does Morocco plan to legalize crypto for its citizens?

Ever Since the government banned the use of crypto for its public back in 2017, there has been an increase in crypto usage amongst the people. The government has been taking this time to ensure that it can legalize crypto for its residents with the proper framework. The central bank, known as Bank Al Maghrib, "has prepared a draft law regulating crypto assets, which is currently in the adoption process," Morocco's central bank governor, Abdellatif Jouahri, told an international conference in Rabat.

This news is crucial for Moroccons as they can now take advantage of the many benefits that come equipped with crypto currency and technology. In addition, with the increase in regulation, many popular exchanges can also legally operate in Morocco. At the same time, there is news that the Moroccan central bank may also introduce a central bank digital currency. While talking on the topic he said, “Regarding central bank digital currencies, and like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion.”

Conclusion

While the journey to crypto adoption has been slow for many governments, Morocco's recent steps show how nations can embrace this revolutionary technology with the right frameworks in place. By legalizing crypto and exploring central bank digital currencies, Morocco is opening the door to financial innovation and inclusion for its citizens. This is a step in the right direction, and it’s a reminder that with education, regulation, and collaboration, all countries can unlock the immense potential of cryptocurrency and blockchain technology. Let’s hope to see more nations follow suit and pave the way for a future where crypto is accessible to everyone!