Dr. Maytham Hamid Nasser / Department of International Economic Relations / College of Political Science
The Central Bank of Iraq recently announced its intention to introduce the Iraqi digital dinar into local and international transactions. This step represents a genuine need under economic conditions aimed at addressing liquidity shortages and combating the phenomenon of cash hoarding in Iraq. Iraq can benefit from the advantages made possible by such uses, especially since emerging international banks and transactions have begun creating conditions that work toward granting legitimacy to these uses, particularly with the expectation that the volume of trading in digital currencies will rise from USD 100 million in 2023 to USD 213 billion by 2030.
Cryptocurrencies are regarded as a financial innovation that has brought about a revolution in the world of finance, and their repercussions have extended to numerous countries and institutions around the world. Technological development has contributed to the emergence of such instruments. The widespread use of digital currencies also leaves effects on monetary policy and the global economy, and adds new burdens to central banks in dealing with them. Bitcoin is one of the most famous digital currencies; its design began in 2007, and its basic idea is to dispense with central authority.
It is an electronic monetary system that relies on financial transactions between one user and another without the presence of an intermediary, and it is considered the first monetary system that exists entirely on the internet and is not subject to any central control, unlike traditional money.
