The Central Iraq is heading to issue a digital currency as a gradual alternative to the paper currency economy

The Central Bank of Iraq is heading to issue a digital currency as a gradual alternative to the paper currency, according to the appearance of Muhammad Saleh, the financial advisor to the Iraqi Prime Minister.

The official (conscious) Iraqi News Agency quoted Saleh today as saying that the issuance of a digital currency will represent a qualitative leap in the digital national payment system and enhance transparency.

He added that this step would achieve many benefits, including:

• Reducing cash leakage.
• Reducing the trading of paper currency outside the banking system.
• Reducing the need to print money frequently, reducing the costs associated with their production and distribution.
• Promote transparency control of financial flows.
• The ability to track digital liquidity and spending trends, whether consumed, savings, or investment.
• Improving capital control and external transfers, and supporting anti -money laundering efforts.

The financial advisor pointed out that “digital currencies contribute to achieving financial inclusion, especially for the less integrated groups in the banking system, which contributes to enhancing economic and social integration.”

He pointed out that “the transition to the digital currency requires a strong technical infrastructure, which includes reliable and developed internet networks, and advanced cyber security systems to protect data and transactions, as well as enhance the culture of societal admission to digital currencies, starting with government agencies, through their use in formal and official transactions.”

And he added that “digital criticism will maintain its traditional functions as an account unit, payments and savings, with the possibility of using it via the Internet and smartphones, which will contribute to developing a more stable and efficient financial environment.”