Iraq’s Path to a Digital Economy: New Directives Usher in Era of Electronic Payments, 31 OCT

Iraq’s Path to a Digital Economy: New Directives Usher in Era of Electronic Payments

With the stroke of a pen, the office of Iraq’s Prime Minister has issued a series of executive orders that could reshape the nation’s financial landscape. The mandate, centred on the advancement of electronic payment systems and Point of Sales (POS) technology, signals Iraq’s intention to join the global digital economy’s accelerating tempo.

Driving Digital Transformation

The measures include the implementation of requirements issued by the Central Bank of Iraq, the General Secretariat of the Council of Ministers, and related entities. These directives are designed to fast-track the application of electronic payment systems, a critical step towards modernizing Iraq’s commerce and banking sectors.

But the changes run deeper, extending to the very conduct of government business. Procurement and implementation committees will now use electronic payment tools, integrating digital transactions into the heart of governmental operations.

Embracing Financial Technologies

The executive orders also mandate the adoption of financial and accounting information systems that facilitate the use of electronic payment methods. The implications are profound: a digital leap forward, translating into greater financial transparency, efficiency, and accountability.

The Central Bank of Iraq is tasked with taking all necessary steps to support the implementation of electronic payment systems. This move underscores the vital role of the CBI in driving this digital transformation, a testament to its pivotal role in Iraq’s economic future.

Incentivizing Electronic Payments

Perhaps most intriguingly, the new directives stipulate that government entities impose additional fees for cash transactions. This strategy is designed to nudge citizens and businesses towards electronic payments, fostering a cashless culture that aligns with global trends.

These actions, set to commence on the first of December 2023, represent a bold leap into the future for a nation navigating the complexities of post-war rebuilding and economic revitalization.

While the road to a fully digital economy is long, these directives represent a significant step in that direction. They pave the way for a new era of financial inclusivity and transparency in Iraq, promising a future where digital transactions are the norm rather than the exception.

https://bnn.network/tech/iraqs-path-to-a-digital-economy-new-directives-usher-in-era-of-electronic-payments/