Issuing a Central Digital Currency in Iraq: Infrastructure and Implementation Steps

Abstract

Indicators of financial inclusion and digital transactions in Iraq, along with the development of digital infrastructure, are fundamental to issuing central bank digital currencies (CBDCs) and achieving financial and economic stability. CBDCs play a significant role in promoting financial inclusion and monetary stability amidst the proliferation of virtual currencies. This is reflected in improved efficiency of payment systems and underscores the necessity of experimentation and a phased approach to issuance. It must be emphasized that issuing digital currencies in Iraq requires strengthening the digital infrastructure and developing modern technology to support digital currency transactions. Iraq could join one of the existing digital currencies in the Arab region and then gradually issue its own currency within a period not exceeding ten years.