How Moroccans Use Crypto for International Payments Despite the Ban
Most people assume that if a government bans something, it disappears. But in Morocco, that’s not how it works with cryptocurrency. Even though the Central Bank of Morocco (Bank Al-Maghrib) outlawed all crypto transactions in November 2017, millions of Moroccans still use digital currencies to send money abroad. Why? Because the traditional system just doesn’t work for them.
The Ban That Didn’t Stick
In 2017, Morocco’s Ministry of Economy and Finance made it clear: no Bitcoin, no Ethereum, no stablecoins. The official reasons? Money laundering, volatility, no consumer protection, and violations of foreign exchange laws. On paper, it looked like a clean break from unregulated finance. But on the ground, it was a disconnect. Moroccans with family abroad - especially in Europe - still needed to send money home. Traditional remittance services like Western Union and MoneyGram charge up to 10% in fees. Banks take days. And sometimes, they just refuse to process transfers altogether.So people turned to crypto. Not because they loved Bitcoin’s price swings. Not because they were speculators. But because it was faster, cheaper, and harder to block. A worker in France sending 500 euros to his sister in Casablanca can now convert it to USDT on a peer-to-peer platform, send it via a Telegram group, and have her cash it out at a local exchange kiosk in less than an hour. No bank approval. No paperwork. No waiting.
How It Actually Works
There’s no official app. No licensed exchange. It’s all underground. Here’s how it flows:- A Moroccan living in Spain logs into a P2P crypto platform like Paxful or LocalBitcoins.
- He finds a buyer in Morocco willing to pay in cash for USDT or BTC.
- He sends the crypto from his wallet to the buyer’s public address.
- The buyer shows up at a local shop - often a mobile phone repair stall or a small café - and hands over Moroccan Dirhams.
- The transaction is done. No bank involved. No government record.
These shops have become informal crypto cash-out points. They don’t advertise. They don’t have signs. But everyone in the neighborhood knows who to go to. Some even have WhatsApp groups where buyers and sellers coordinate prices and times. The fees? As low as 1-3%. That’s a huge drop from the 8-10% charged by traditional remittance companies.
Why Crypto Beats Banks
For Moroccans, crypto isn’t about getting rich. It’s about getting paid. Here’s what it solves:- Foreign exchange limits: Moroccan banks restrict how much dirham you can convert to euros or dollars. Crypto bypasses this entirely.
- Slow processing: Bank transfers between Morocco and Europe can take 5-7 days. Crypto? Under 30 minutes.
- Bank refusals: Many banks flag remittances from certain countries as “high risk.” Crypto doesn’t care where you’re from.
- Diaspora demand: Over 5 million Moroccans live abroad. That’s nearly 15% of the country’s population. They send over $8 billion home each year. Crypto is quietly eating into that market.
A 2024 survey by a local research group found that 38% of Moroccans with family overseas had used crypto for remittances at least once. Among those under 35, the number jumped to 62%. This isn’t fringe behavior. It’s mainstream adaptation.
The Central Bank’s Quiet Shift
Here’s the twist: Bank Al-Maghrib isn’t ignoring crypto. It’s building its own version.In 2025, the central bank announced it was finalizing a draft law to legalize and regulate cryptocurrencies. Not to encourage them. But to control them. At the same time, it’s working with the IMF and World Bank to develop a national digital currency - a CBDC - specifically designed for cross-border payments. This isn’t Bitcoin. It’s a government-controlled digital dirham, trackable, reversible, and tied to the central bank’s rules.
Why? Because they’ve realized: you can’t stop crypto. But you can replace it. If people want fast, cheap international payments, why not give them a version that’s safe, legal, and under state control?
They’re also teaming up with Egypt’s central bank. Both countries share similar economic pressures - large diasporas, high remittance volumes, and rigid banking rules. A joint CBDC corridor between Cairo and Rabat could become Africa’s first regulated digital remittance highway.
The Hidden Cost: No Safety Net
But here’s the dark side. When you use crypto in Morocco, you’re on your own. If a P2P buyer disappears after you send the crypto? No recourse. If a local shop gets raided and your cash is seized? No insurance. If your wallet gets hacked? No customer service line. The central bank makes it clear: you are entirely on your own.There have been cases. A man in Marrakech sent 12,000 dirhams worth of USDT to a “trusted” buyer. The buyer vanished. He lost everything. No police report helped. No bank could reverse it. He had no legal claim.
That’s the trade-off. Speed and savings come with zero protection. For many, it’s worth it. For others, it’s a gamble they can’t afford to lose.
What’s Next?
The 2025 draft law suggests Morocco is moving from outright ban to regulated acceptance. But not because crypto is popular. Because it’s unavoidable. The underground market is projected to hit $292.4 million by 2026. That’s not a glitch. That’s a system.The real question isn’t whether Moroccans will keep using crypto. They already are. The question is: will the government let them do it legally - and safely - or will it keep playing cat-and-mouse with millions of ordinary people trying to support their families?
One thing’s certain: as long as banks are slow and expensive, crypto will find a way. In Morocco, it already has.
