CBI Governor: We Issued Regulations for Licensing Digital Banks in Iraq

Baghdad – INA
The Governor of the Central Bank of Iraq-CBI, Ali Al-Alaq, announced today, Tuesday, the launch of strategic projects to support digital transformation, highlighting the issuance of regulations for licensing digital banks in Iraq.

Speaking at the Fourth Annual International Scientific Conference, titled "Digital Financial Services - Challenges of Reality and Future Prospects" attended by The reporter of Iraqi News Agency (INA), Al-Alaq stated, “The conference was organized in partnership between the Financial and Accounting Center and several universities and academic institutions. It aims to discuss advancements in digital financial services, the challenges faced, and to anticipate the future of this vital sector.”
 
He added, “Since the late 18th century, the world has witnessed four major inventions that reshaped its course. These include the steam engine, electricity and mass production, the mid-20th century revolution in electronics and information technology, and, since 2000, developments centered on artificial intelligence, the internet, robotics, and big data.”

Al-Alaq emphasized that "the Central Bank has prioritized digital transformation as one of its core objectives within its third strategic plan (2014–2026). This plan seeks to enhance banking efficiency, improve financial performance, and meet customer needs in light of rapid technological advancements." 

He noted that the Central Bank has taken significant strides to support digital transformation by upgrading technological infrastructure and issuing regulations that enhance financial inclusion. Strategic initiatives have been launched, including the Immediate Payments Project, local card systems, unified payment gateways, and, notably, issuing regulations for licensing digital banks in Iraq, all while ensuring cybersecurity and addressing risks associated with this shift.

The Governor stressed the importance of the conference's goals, which include identifying current challenges in digital financial services, forecasting future trends, fostering innovation, and promoting collaboration among stakeholders. “These goals underscore the pressing need for joint efforts,” he remarked.

Al-Alaq also highlighted cybersecurity as a critical challenge, explaining that “the Central Bank has launched projects to strengthen cybersecurity by developing tools and systems for its Cybersecurity Management Center and adopting advanced approaches to safeguard the bank and the broader banking sector.”

He concluded by underscoring the growing role of artificial intelligence in digitizing financial services.

“AI opens new horizons for innovation and service improvement. At the Central Bank of Iraq, we believe financial technology is shaping the future of the financial sector. This necessitates concerted efforts to prepare national cadres capable of understanding and advancing these technologies,”
 He reaffirmed the Central Bank's commitment to driving digital financial transformation while promoting innovation and sustainability in the financial sector.