Where is the investment in cryptocurrencies in Morocco?

In 2021Morocco was ranked 24th Global Cyber ​​Currency Useraccording to the Global Cryptocurrency Adoption Index compiled by chain analysisa platform that provides data related to the blockchainthe technology engine of cryptocurrency.

According to a 2021 study by the crypto payment company Triple-Athe Kingdom recorded a bitcoin trading volume (one of the most common cryptocurrencies) encrypted to six million dollars – the highest ofNorth-Africa† This is how he placed himself 4th position on the African continent, behind the Nigerial’South Africa and the Kenya

The latest update, provided by mint.dancea portal specialized in bitcoin statistics, dated May 14, 2022† It shows that the weekly bitcoin trading volume was 1,143,660 MAD

According to Badr Bellaj, director of new technologies at mchaina company developing blockchain technology in Morocco and Africa, the actual estimate of these exchanges would be: double, if not tripleof the aforementioned amount.

Out of 10,000 people, 21% would be cryptocurrency holders

On an example of 10,000 people, 21% would be holders of cryptocurrencies, according to a recent survey conducted by Mchain and the results of which were first revealed to Médias24; this sample is representative of the Moroccan population aged 18 and older

The research also shows that 63.36% of those surveyed are familiar with cryptocurrencies, including: 8.32% would at least have heard of digital money.

Source: Mchain

On the 21% cryptocurrency holders, 57.35% said they invested less than 10,000 MAD in these crypto assets; 32.64% investments made varying between 10,000 and 100,000 DHwhile 5.8% have invested between 100,000 and 500,000 DH† Investments of more than 500,000 DH stand for 4.2%further indicates the research conducted by Mchain.

Source: Mchain

Investors are mostly young people

In detail, these are the individuals who invest indigital moneyWhile the Moroccan companies preference for investments in technology that supports these crypto assets (blockchain), explains Badr Bellaj.

In Morocco, investors in cryptocurrencies are mainly youth average age between 20 and 30 years old, our interlocutor continues. They are generally practitioners of e-commerce or trade who choose cryptocurrency because it is a easy payment method and accessible to all

Digital money does indeed work in a certain way decentralized† In other words, without any authority to issue, regulate or control it – through the regulator – nor intermediaries insuring its transactions – the banks. By choosing cryptocurrency, users thus avoid the traditional transaction processconsidered very long and restrictivesays Badr Bellaj.

Investments not always easy

It must also be said that virtual currency transactions remain very successful despite their formal ban in Morocco† The reluctance of Moroccan financial institutions has proliferation of these investments in the Kingdomnotes Badr Bellaj.

“We could even speak of a boomerang effect† However, since the warning formulated in 2017 by means of Bank Al Maghrib and Moroccan Capital Market Authority on the risks associated with the use of virtual currencies, investment in the latter continues to explode,” he notes. Investors would even left Morocco and would have settled in countries where these currencies are legally recognized to continue their investments there, adds our interlocutor.

Young investors don’t seem upset by the cryptocurrency volatility† For our expert, this category of people is not only aware of the risks linked to such investments – including in particular a haslack of consumer protection and a low convertibility – but it is exactly this volatility that drives them to invest in the first place† For the vast majority of them, however, the decline in asset value represents an opportunity to invest in the hope of price increases.

NFT mode

More and more Moroccans choose toinvesting in NFTs (non-replaceable token) † in French: non-fungible token), Badr Bellaj notes. The NFT is a lunique and inviolable digital identifier used to authenticate a digital file (image, photo, video, etc.). An NFT can take infinitely many forms, such as a artworka single or even a simple meme

For our expert, investment in NFTs, both in Morocco and elsewhere, represents just one transient fashion which he believes will eventually disappear in the coming years.

“Investing in NFTs also proves risk compared to investing in cryptocurrency which, unlike the latter, cannot be duplicated in any way,” continues Badr Bellaj.

Another pitfall: NFT platforms in practice rarely check whether the issuers of tokens referencing an underlying work own the? intellectual property, as authors or licensees. By many copyright infringements could then be the result of this lack of control, concludes Badr Bellaj.

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