Iraq to convert lusivity to electronic payment in mid-2024, 5 MAY

Iraq to convert lusivity to electronic payment in mid-2024

Economy News – Baghdad

The financial adviser to Prime Minister Mazhar Mohammed Saleh confirmed on Sunday that the government’s strategy encouraged citizens to enter the climate of digital payments, while noting that monetary use will witness a gradual closure in favor of digital financial inclusion starting from next year 2025.

Saleh said, to the official agency, and followed by “Economy News”, that “the customs and traditions that have remained prevalent in the practice of monetary demand behavior according to the primitive monetary methods in the settlement of financial and commercial transactions, are not in accordance today with the developments of the modern digital institutional society in our country, especially the change in the settlement of financial transactions and the gradual abandonment of the use of direct cash payment methods in favor of digital payments.”

He added that “the behaviors of payment, delivery, settlement of financial rights and settlement of transactions are being reflected in the cash demand function, which is changing behaviorally in favor of dealing with a modernist pattern imposed by digital payments in the country.”

He added that “since the government launched the electronic payment strategy a few months ago, the public has for the first time in our country has gone by their will to enter (the second phase) in the digital payments climate, by moving from withdrawing receivables in cash through payment cards and dealing with the inherited methods in payments based on the cash payment of transactions, by shifting towards keeping its money inside their bank accounts so that it can use the same payment cards for many times within the framework of high and renewable digital payment in settling various transactions within the daily life of the citizen.”

He pointed out, “The second phase of digital payments constitutes an accelerated development to achieve an advanced digital stage in banking life by the establishment of digital banks, as three issues were helped by the increasing use of mobile phones in the settlement of digital transactions, the second is the development of the numbers of opening bank accounts that support the digital payments activity, and the third is the rapid growth of digital government government leallusivity.”

Saleh stressed that “by the middle of this year, the government luse will almost completely shift to payment through credit cards and other approved digital payment methods, which are witnessing today in all fuel sales stations to end up paying taxes, fees, wages and government transactions to be all through digital payment cards.”

He pointed out that “large joints of institutions and private sector individuals are rapidly settling their payments by feeding each other’s accounts with easy transfer, such as (feeding their digital cards) to settle the rights between them digitally, as well as the use of pos and similar means of assistive technology for payments, which have become widespread and facilitated in our country.”

He continued, “Starting from 2025 upwards, the payment habits within the economic community will shift towards a completely different digital life. Electronic payment cards become one of the modern habits in changing the monetary behavior of society. Monetary use will witness a gradual closure in favor of digital financial inclusion, and then the cash leaks will move in their current form, which still rest outside the banking system to automatically take their natural way into the banking system itself and under the influence of the new environment for digital payments.”

However, “the use of digital payments has added millions of new bank accounts for adults who have not previously dealt with the banking system,” he said, predicting that “in the coming months, bank accounts will cover the adult generation, because electronic payment cards are linked to the bank account itself.”

He pointed out that “cash liquidity will be automatically transferred within the banking system, which will help high levels of certainty and low liquidity risk in the banking system itself, which encourages the levels of cash credit granted to the public for the purposes of economic activity and at the same time helps to ensure the flow of the state’s cash revenues within the developments of the unified treasury account, which at the same time maintains moderate growth rates in the growth of public liquidity to match its growth inversely with the escalation of the growth of the uses of digital payments.”

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