Central Bank of Iraq to Launch Digital Currency
The Central Bank Governor, Ali Al-Alaq, announced on February 26, 2025, the upcoming introduction of a digital currency that aims to gradually replace traditional paper currency in Iraq.
In a recent press briefing, Al-Alaq articulated that the financial landscape and banking systems of the country are set to undergo significant transformative measures, notably with a shift towards digital payments implemented by central banks worldwide.
Al-Alaq stated, "The central bank is moving to create a digital currency that will gradually take the place of paper currency, as has been observed in various central banks globally." This initiative aligns with the global trend toward digitalization in the financial sector.
Furthermore, Al-Alaq emphasized the intention to establish a data center in Iraq, signifying the bank’s commitment to advancing the nation’s digital transformation agenda. He noted, "We are seriously considering the establishment of a data center in Iraq, with initiatives moving forward as part of our digital transformation steps."
Key Takeaways
- Announcement Date: February 26, 2025
- Initiative: Introduction of a Central Bank digital currency
- Goal: Gradual transition from paper to digital currency
- Future Steps: Establishment of a data center in Iraq
This strategic move reflects the evolving nature of monetary policies globally and aims to position Iraq’s banking system within the digital economy framework.
