Government Advisor: CBI Issuance of Digital Currency Represents a Qualitative Leap in NPS

 
Baghdad-INA
The financial advisor to the Prime Minister, Mazhar Mohammed Saleh, explained today, Saturday, the benefits of issuing a digital currency for the Central Bank of Iraq (CBI), while indicating that its issuance will represent a qualitative leap in the national payments system(NPS) and enhance transparency.
 
Saleh told the Iraqi News Agency (INA): "The Central Bank is moving towards issuing a digital currency as a gradual alternative to paper currency," indicating that "this trend represents a qualitative leap in the national digital payments system." 
 
He added that "this step will achieve many benefits, including reducing cash leakage, reducing printing costs, and limiting the circulation of paper currency outside the banking system, in addition to reducing the need to print money repeatedly, which reduces the costs associated with its production and distribution, in addition to enhancing transparency and control over financial flows and the ability to track digital liquidity and spending trends, whether consumer, savings, or investment, in addition to improving control over capital and foreign transfers, and supporting efforts to combat money laundering."

He pointed out that "digital currencies contribute to achieving financial inclusion, especially for groups less integrated into the banking system, which contributes to enhancing economic and social integration."
 
 Saleh noted that "the transition to digital currency requires a strong technical infrastructure, including reliable and advanced internet networks, advanced cyber security systems to protect data and transactions, as well as enhancing the culture of societal acceptance of digital currencies, starting with government agencies, through their use in collection operations and official transactions." 
 
He added that "digital cash will maintain its traditional functions as a unit of account, payments and savings, with the possibility of using it online and smart phones, which will contribute to developing a more stable and efficient financial environment."