Proceedings of the International Conference on Multidisciplinary Research in Management and Economics (ICMRME 2025)

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The Impact of Financial Digitization on the Reduction of Cash Usage in Morocco

Authors
Safwane Sadki1, *
1University Laboratory for Research in Instrumentation and Organizational Management, Faculty of Legal, Economic, and Social Sciences of Oujda, Mohammed First University, Oujda, Morocco
*Corresponding author. Email: sadki.safwane.23@ump.ac.ma
Corresponding Author
Safwane Sadki
Available Online 17 November 2025.
DOI
10.2991/978-94-6463-892-9_9How to use a DOI?
Keywords
Cash; Digital payment; Financial digitization
Abstract

At present, nothing seems capable of slowing down the widespread adoption of cash in everyday transactions. According to Bank Al Maghrib, the outstanding amount of currency in circulation, excluding cash held by banks, reached 412.8 billion dirhams. As a result, the share of currency in circulation relative to GDP has reached 30%. This phenomenon is increasingly worrying Bank Al-Maghrib and players in the payment ecosystem, who are struggling to identify the mechanisms behind its persistence.

This study examines the impact of digital payments on reducing cash usage in Morocco, using an empirical approach and applying an ARDL model to annual data covering the period 2014–2023.

The results reveal a short-term substitution effect, where the increase in card payments leads to a significant decrease in cash withdrawals. This confirms that digital payments contribute to reducing cash usage. However, no significant impact is observed in the long term, leading to the conclusion that the transition to a less cash-dependent economy remains incomplete. This situation is mainly the result of behavioral barriers, such as the social value of cash and low confidence in digital solutions.

This study confirms the importance of promoting digital payments and financial inclusion by combining targeted incentives and infrastructure improvements to accelerate the transition to an inclusive digital economy.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Multidisciplinary Research in Management and Economics (ICMRME 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
17 November 2025
ISBN
978-94-6463-892-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-892-9_9How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Safwane Sadki
PY  - 2025
DA  - 2025/11/17
TI  - The Impact of Financial Digitization on the Reduction of Cash Usage in Morocco
BT  - Proceedings of the International Conference on Multidisciplinary Research in Management and Economics (ICMRME 2025)
PB  - Atlantis Press
SP  - 127
EP  - 141
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-892-9_9
DO  - 10.2991/978-94-6463-892-9_9
ID  - Sadki2025
ER  -