Digital Dirham in Morocco: Bank Al-Maghrib Confirms Technical Feasibility with Caution

Bank Al-Maghrib revealed, in a research paper prepared by three of its experts, Shaimaa Al-Shawi, Kamal Lahlou and Mohamed Miko, that the beta version of the "digital dirham" proved its technical feasibility, after an experiment that benefited from the support of the International Monetary Fund and the World Bank. Despite this finding, the researchers stressed that issuing a national digital currency remains a “long-term option” that requires a gradual, cautious and participatory approach, without specifying any timetable for the actual launch. What did the experiment involve? Bank Al Maghrib tested a prototype for an individual-oriented digital currency. It included issuing and distributing them through intermediaries, holding them in digital wallets, making direct payments between individuals, in addition to verifying their ability to work offline and their interaction with the existing financial infrastructure. The researchers compared two technical solutions, one centralized and one distributed, with cybersecurity risk assessment, data protection, and the ability of the infrastructure to accommodate a large number of users. According to the proposed design, Bank Al-Maghrib will issue and supervise the currency, while banks The institutions of performance by distribution and the relationship with customers, provided that the currency in its first stage is interest-free, limited in terms of possession and transactions, and fully convertible at the nominal value of the dirham . Varying international experiences Researchers based on a survey conducted by the Bank for International Settlements of 93 central banks, covering about 76% of the world's population and 94% of global gross product, and revealed a significant variation in adoption rates: Selected international experiences in digital currencies for central banks The digital currency Level of adoption /current status China Digital Yuan About 225 million digital wallets and more than 3 billion transactions as of September 2025 Digital Rupee India About 7 million users, compared to 242 billion transactions via the instant payment platform UPI Bahamas Sand USD Less than 1% of the cash in circulation Nigeria E-Naira Less than 1% of the cash in circulation Russia Digital Ruble The actual operation was launched on September 1, 2026 Eurozone Digital Euro Experience starting from 2027 and a possible initial issuance year 2029 with a ceiling of 3,000 euros per person. The report pointed out that the United States and other countries have suspended or frozen their projects in this field, which explains the call for Moroccan researchers to be cautious before any actual issuance commitment. Why does it matter to Moroccans? The Central Bank links the digital currency project to the reality of financial inclusion in Morocco, where the money supply in circulation increased from about 70 billion dirhams in 2001 to more than 500 billion dirhams in 2025, while only 62% of resident adults have a bank account, with a clear gap with Young people between 15 and 24 years old. The informal sector, which includes more than two million units and represents about 30% of the added value and 75% of the operation, also contributes to the complexity of the task of financial inclusion, as only 2% of the owners of these units have a bank account dedicated to their activity. The authors of the paper believe that the digital dirham may contribute in the future to reducing the cost and accelerating the remittances of Moroccans living abroad, which are equivalent to about 8% of GDP, through a second pilot project that brings the Bank of Morocco together with the Central Bank of Egypt to test Cross-border payments, based on the international M-Bridge project that reduced the costs of some remittances by up to 50%. Success conditions The researchers identified four basic conditions for the success of any future project: a clear political commitment, a specific legal framework, and a mature digital infrastructure that includes optical fibers, 5G networks, data centers with strict cybersecurity governance, a competitive interoperable performance system, and financial and digital awareness and education campaigns, considering that digital currency alone will not be solved The problem of financial exclusion.