A step that enhances transparency … Iraq seeks to issue a digital currency instead of paper

The Central Bank of Iraq is seeking to gradually issue an alternative digital currency for the paper currency, according to an adviser to the Iraqi Prime Minister, today, Saturday.

The Iraqi News Agency quoted the appearance of Mohamed Saleh, the financial advisor to the Prime Minister today, that the issue will represent a qualitative leap in the system of digital national payments and enhance transparency.

He added, “This step will achieve many benefits, including reducing cash dropout, reducing printing costs, and reducing the trading of paper currency outside the banking system, as well as reducing the need to print money frequently, which reduces the costs of its production and distribution, in addition to enhancing transparency and controlling financial flows, and the ability to track digital liquidity, and spending trends, whether consumed, savings, or Investment, in addition to improving capital control and external transfers, and supporting anti -money laundering efforts.

He pointed out that “digital currencies contribute to achieving financial inclusion, especially for the less integrated groups in the banking system, which contributes to enhancing economic and social integration.”

He explained that “the transition to the digital currency requires a strong technical infrastructure, which includes reliable and advanced internet networks and advanced cyber security systems to protect data and transactions, as well as enhance the culture of societal admission to digital currencies, starting with government agencies, by using them in collection and official transactions.”

He added that “digital criticism will maintain its traditional functions, an account unit, payments and savings, with the possibility of using it via the Internet and smartphones, which will contribute to developing a more stable and efficient financial environment.”