CBI: Digital Payments to replace Physical Currency
By John Lee.
In his speech to a conference in Baghdad, Ali Mohsen Al-Allaq, Governor of the Central Bank of Iraq (CBI), highlighted significant progress in digital payments, citing an increase in ATMs and e-wallets, which helped boost financial inclusion to 40% from 20% in just two years, supported by CBI initiatives.
He noted that Iraqi banks are undergoing major transformations, adopting internationally accredited financial systems to enhance cross-currency transactions and banking operations. Looking ahead, he envisioned banks shifting from traditional entities to smart digital platforms, issuing digital financial identities to facilitate seamless transactions.
Al-Allaq also stated that cash transactions will gradually decline, with digital payments issued by central banks replacing physical currency. CBI is actively working on launching its own digital currency, mirroring global trends. Additionally, Iraq is planning to establish a national data center, critical for digital economy growth, AI applications, and big data analysis.
He called for a comprehensive national strategy to accelerate Iraq’s digital transformation.