Casablanca – Bank Al-Maghrib is examining the potential introduction of a digital version of the Moroccan dirham, with new economic research and technical experiments highlighting both the opportunities offered by the project and the risks it could create for the financial system. The initiative reflects the central bank’s efforts to assess how digital money could modernize payments, expand access to financial services and strengthen the resilience of the economy without disrupting commercial banking activities.

On October 9, 2026, the central bank published two research papers examining central bank digital currencies and their potential implications for Morocco. The first focuses on the challenges associated with introducing a digital dirham and the lessons that can be drawn from international experience. The second uses a macroeconomic model to assess how a central bank digital currency could affect a small, open economy such as Morocco.

The publications provide a basis for evaluating the possible design of a digital dirham, its role in the monetary system and the conditions required for its implementation. However, they do not constitute a formal decision to launch the currency or establish a timetable for its introduction.

The concept involves creating a digital form of money issued directly by Bank Al-Maghrib. Unlike balances held in commercial bank accounts, which represent claims on private banking institutions, a central bank digital currency would constitute a direct liability of the monetary authority. It would be intended primarily for payments and could coexist with banknotes, coins and existing electronic payment services.

The proposed system would rely on a division of responsibilities between the central bank and financial intermediaries. Bank Al-Maghrib would issue the currency, while commercial banks and payment institutions would distribute it, provide digital wallets and manage relationships with users. This arrangement could help integrate the new instrument into the existing financial system while maintaining a role for institutions already serving households and businesses.

Technical experiments have examined the issuance and distribution of digital money, storage in electronic wallets, payments between individuals and compatibility with current payment infrastructure. Both centralized technological systems and distributed ledger solutions have been considered. The results indicate that a digital dirham is technically feasible, although its implementation would require further legal, institutional and operational preparation.

One of the main arguments for developing the currency is the possibility of expanding financial inclusion. Despite progress in banking services, a substantial share of Morocco’s population remains outside the conventional banking system. Data cited in the research indicate that 62% of individuals residing in Morocco held bank accounts in 2025.

A digital currency could provide additional payment options for people who have limited access to banking services, particularly those living in rural and remote areas. If the system were designed to be accessible without requiring a conventional bank account, it could help some households participate more easily in digital transactions.

The potential benefits would extend to small businesses and merchants. A widely accepted digital dirham could facilitate everyday payments, reduce certain transaction costs and provide an additional means of transferring money. Nevertheless, its contribution would depend on the availability of affordable devices, reliable payment infrastructure and services that are simple enough for different categories of users.

Cash remains an important feature of Morocco’s economy. The amount of currency in circulation increased substantially over the past two decades, rising from approximately $7.2 billion in 2001 to more than $51.5 billion in 2025. This growth illustrates the continued importance of physical money, even as electronic payment services expand.

The digital dirham would therefore be designed as a complement to cash rather than a compulsory replacement. Its adoption would depend on whether consumers and merchants consider it more convenient or economical than the payment methods they already use.

The potential effects on commercial banks represent a more complicated aspect of the project. Deposits are a major source of funding for banks, enabling them to provide loans to households, finance businesses and support investment. If customers transferred substantial amounts of money from conventional bank accounts into digital wallets backed by the central bank, commercial institutions could face pressure on their funding base.

The consequences would depend on how the currency was used. If digital dirhams primarily replaced banknotes and coins in everyday transactions, the impact on bank deposits could be limited. However, if households began using the new instrument to hold savings, banks could lose deposits and face higher funding costs.

The risk could become more pronounced during periods of economic or financial uncertainty. Because digital transfers can be executed rapidly, customers might move money into central bank-backed wallets more quickly than they could withdraw equivalent amounts in physical cash. Such movements could create liquidity pressures and complicate the management of financial stability.

Several safeguards could help contain these risks. One possibility is to establish limits on the amount of digital currency individuals may hold. Another is to design the instrument primarily for payments rather than savings, potentially by leaving balances unremunerated. The continued involvement of commercial banks and payment institutions could also help preserve existing channels for financing the economy.

These arrangements would require careful calibration. Restrictions that are too severe could reduce the currency’s usefulness, while insufficient safeguards could encourage large transfers of deposits away from commercial banks. The central bank would therefore need to determine how to balance accessibility with the stability of the financial system.

Cross-border transactions represent another potential area of development. Morocco receives substantial remittances from citizens living abroad, which provide income for households and contribute to foreign currency inflows. These transfers have averaged around 8% of gross domestic product in recent years.

Digital currency arrangements could potentially reduce the time and cost associated with international payments by simplifying settlement between participating institutions. However, such benefits would depend on cooperation between central banks, compatible payment infrastructure, regulatory coordination and arrangements for converting currencies.

Bank Al-Maghrib has also participated in a cross-border payment experiment with the Central Bank of Egypt, supported by the World Bank. The initiative examines how digital payment technologies could help accelerate settlement and reduce transfer costs. Its practical implications for Morocco would depend on the development of compatible systems and agreements with other jurisdictions.

Privacy and cybersecurity would also be central to any implementation decision. A digital currency could generate detailed records of financial transactions, raising questions about how personal data would be collected, stored and accessed. The authorities would need to protect users’ privacy while maintaining the ability to identify suspicious operations linked to money laundering and terrorist financing.

The system would also have to withstand cyberattacks, technical failures and interruptions to payment services. A security breach or prolonged outage could undermine confidence in the currency and interfere with transactions across the financial system. Clear rules governing data protection, access rights and responsibility for losses would therefore be necessary.

Another possibility under examination is the use of digital dirhams for offline payments. This feature could allow transactions to continue in areas with weak internet coverage or during temporary communication outages. It could improve access in underserved regions, although technical controls would be required to prevent fraud and the duplication of payments.

International experience offers additional lessons. Projects in China, India, the Bahamas, Nigeria and Jamaica demonstrate that launching a central bank digital currency does not automatically ensure widespread public adoption. Users are more likely to embrace such a system when it provides clear advantages over cash, bank transfers and established electronic payment platforms.

Morocco would therefore need to develop a model adapted to local payment habits, banking conditions and technological capabilities. The involvement of merchants, financial institutions and consumers would be important in determining whether the digital dirham could become a practical part of everyday economic activity.

The second research paper examines the potential macroeconomic consequences of introducing the currency. Its modelling suggests that a digital dirham could generate limited long-term gains in economic output and improve the economy’s ability to withstand certain financial shocks. These findings remain conditional on the assumptions used in the model and should not be interpreted as guaranteed outcomes.

The ultimate effects would depend on the currency’s design, the extent of public adoption and its interaction with monetary policy, bank lending and the broader economy. Further analysis would be necessary to determine how different implementation choices could influence financial stability and economic performance.

Bank Al-Maghrib’s research marks a further step in evaluating the future of digital money in Morocco. Technical feasibility has been demonstrated in experimental settings, but the transition to an operational system would require decisions on legislation, governance, security, privacy and the role of financial intermediaries.

The central bank has not announced an official launch date for the digital dirham. For now, the research provides a framework for assessing whether the new instrument could improve payment services and financial access while preserving the stability of the banking system. Any future decision would need to weigh these potential benefits against the economic and operational risks associated with introducing a new form of sovereign money.