IS IRAQ STEPPING INTO THE FUTURE OF CRYPTOCURRENCIES? AL-SUDANI’S ADVISOR REVEALS DEVELOPMENTS
At a time when the world is witnessing major transformations in the field of cryptocurrencies, the economic advisor to the Prime Minister, Mazhar Muhammad Salih, revealed Iraq’s position on these developments, stressing that the country is still in the evaluation phase and has not made a final decision regarding joining this global financial phenomenon.
Saleh said in a statement to {Euphrates News}, “Iraq continues to monitor global developments regarding cryptocurrencies, and the decision to join this field depends on many economic and legal factors that are being carefully studied.”
He pointed out that “Iraq, since 2017, has imposed a ban on dealing in cryptocurrencies due to risks related to financial crimes and sharp fluctuations in their prices, in addition to consumer protection.”
Regarding the latest developments, Saleh explained that “the Central Bank of Iraq stressed in February 2023 the prohibition of the use of cards and electronic wallets for the purpose of speculating in digital currencies,” stressing that “there is no current decision to grant licenses for cryptocurrencies at the present time.”
On the other hand, he pointed out that “the future of cryptocurrencies may change significantly in the coming years, especially if major economic powers take steps towards regulating these currencies more strongly, which may open the way for Iraq to study these options in the future.”
Saleh added, “In a remarkable move, US President Donald Trump issued an executive order to create a strategic reserve of Bitcoin, reflecting the US trend towards integrating cryptocurrencies into its official reserves such as gold and precious metals,” considering it “an attempt to control any disruptions in the international monetary system as long as Bitcoin is traded in US dollars and on most global exchanges, such as Coinbase, Binance, Kraken, and others.”
He explained that “the price of Bitcoin is often measured in dollars because it is the global reserve currency and the most widely used in financial markets. Based on the above, Bitcoin will be one of the cryptocurrencies denominated in US dollars that will be subject to the regulation and dominance of the Federal Reserve Bank and will be given a stronger legal position in the scope of trading it as a currency in the global classification after granting legal legitimacy to the Bitcoin unit, from the highest monetary authority in the world, which is the US Central Bank or the Federal Reserve Bank of the United States.”
Saleh added, “The US Federal Reserve will have a role in legal supervision as a global digital payment and reserve currency and will ensure that Bitcoin is covered by the dollar itself, which gives the United States of America dominance over any encrypted monetary trends outside its monetary system denominated in dollars, which is essential for the expansion of the US monetary system to the world and with control from a central government body this time outside the decentralization of the cryptocurrency market.”