Central Bank of Iraq Introduces Digital Currency Initiative
Baghdad, Iraq — The Governor of the Central Bank, Ali Al-Alaq, announced on Wednesday, February 26, 2025, the launch of a digital currency initiative aimed at progressively phasing out the reliance on traditional paper currency.
During a press conference, Al-Alaq emphasized that the financial and banking landscape is set for significant transformations, as the prevalence of paper currency declines in favor of digital payment solutions implemented by central banks globally.
He stated, “The central bank is advancing plans to create a digital currency that will gradually replace paper transactions, aligning with initiatives observed in various central banks worldwide.”
Moreover, Al-Alaq highlighted the intention to establish a data center in Iraq as part of this digital transformation strategy. He confirmed, “We are actively pursuing steps in this direction to support the overall digital transformation agenda within the banking sector.”
This move is indicative of a broader trend toward modernization in financial systems, aimed at enhancing efficiency and accessibility in monetary transactions.
