Specialists: Transformation Into A Digital Currency In The Right Direction
Economic 2025/03/05 Baghdad: Hussein Thaghab Central Bank of Iraq to issue a digital currency as a "step in the right direction", to
strengthen the financial system and
keep pace with global developments.
Specialists also believe that the
development of the banking system and the
adoption of modern technologies
are vital to ensuring the achievement of the desired benefits, such as
improving financial inclusion and
supporting the national economy. However,
they warn of possible challenges, such as the risks of cybersecurity and the need for a
clear legislative framework that supports this step.
The Governor of the Central Bank d. Ali Al-Alaq, confirmed the approach to creating a bank digital currency, to replace paper currencies.
According to the Financial Adviser to the Prime Minister, Dr. Mazhar Mohamed Saleh, the
Central Bank of Iraq is towards the issuance of a digital currency, which is an advanced step in the world of central banking. He added in his speech to "Al -Sabah", that
this step represents a qualitative leap in the national digital payment system by reducing the percentage of leaks resulting from paper currency problems outside the banking system, which will reduce the need to print large quantities of paper currencies.
This, in turn, will limit the circulation of present criticism, which requires continuous and expensive nutrition for the paper cash payment system.
The problems of the paper currency outside the banking system, which will reduce the need to print large quantities of paper currencies. He pointed out that the
digital currency will contribute to improving transparency and governance, which allows the total economy and monetary policy to adapt its policies in a way that achieves stability and speeds up to fight inflation and control digital liquidity.
The digital currency will also provide a great ability to achieve the financial inclusion of the community segments
quickly and clearly, especially for poor groups related to the banking system. But Saleh stressed that
entering the world of digital currencies requires a strong infrastructure that includes advanced internet networks and superior protection devices from cybersecurity, in addition to the culture of accepting this type of virtual currencies. He stressed that the
state agencies must be the first to accept them in government collection of various forms, with the survival of digital criticism practicing its normal functions as an account unit, payments, savings and settlements.
For his part, Mustafa Akram Hantoush, a specialist in financial affairs, stressed that
talking about issuing a digital currency in Iraq is premature, indicating that
this step requires the presence of an advanced banking device and a strong infrastructure for electronic payment and the national division. In his speech to "Al -Sabah", he added that
society needs to adopt a new culture that supports this transformation, especially in light of the modern transition to the electronic payment system, which still faces great difficulties and challenges. Hantoush explained that the
digital currency represents an electronic balance of value,
which requires a
social awareness and a
deeper understanding of this concept. He also pointed out that
global digital currencies, such as the
electronic dollar in America, the
euro in Europe and the
Chinese electronic yuan, are still facing serious challenges,
especially in the areas of cybersecurity and the dangers of penetration, which led to the incomplete application of its application completely so far. He stressed that the
issuance of a digital currency in Iraq first requires the development of the banking system to
meet international standards,
enhance technological infrastructure, and
build solid confidence between the public and banking institutions. He stressed that
this step, despite its importance, needs accurate planning and comprehensive preparation to ensure its success. https://alsabaah.iq/111169-.html
