The number of digital banks in Iraq will be greater than the neighbouring countries. This is the central bank governor himself today, Al Alak. He says the central bank is expected to experience.
It indicates a shift towards a direction that is fully in line with technical developments and their use in the direction that serves various operations. He goes on to say that digital banks are widely spread in the world and the volume of transactions for those banks reached about $5 trillion annually and hope that the number will reach about 7 trillion annually by 2027. What this amount of money is basically is an important indicator, in a sense, will stimulate the aspect and focus and push of it.
It says Iraq will be one of the countries that will advance in a digital banking environment, that Iraq will occupy an important space, and the number of these banks in Iraq will be greater than neighbouring countries.
It sounds like they have a big push to do digital transformation. It says central bank. Before starting to launch the round of licences for digital banks, it conducted in depth studies and they see that the experiences of other countries intensively. Until we set the rules and controls necessary to license these banks.
So they have established, it looks like a set of rules and controls to be able to licence these banks. And I think they were talking between it says the CBI studied in the playing field, drafted over 70 banks for tryouts, if you will.
They basically are going to pick the best players for Iraq’s new digital banking system. And Iraq’s going cash less. Not no cash, but just cash less.
And they have the best tools that are going to be used. Basically today it looks like it’s going to be the beginning of a digital, Iraq’s new digital stadium to be opening up. It’s almost like a baseball game with the future before them and the future in the whole digital world is coming to fruition. And basically the world leadership in finance and banking will be in support of Iraq’s new team.
So they have new banks coming. They also have the consolidation of some banks, the government banks, the private banks, associations involved in all of this. So there’s a launch of the electronic payment conference that’s ongoing Saturday & Sunday.
Basically the conference is towards what? Financial stability in Iraq. And some of the names that they dropped and were big. Some of the names they didn’t tell you about is interesting because they’re openly talking about international businesses, but they’re not exposing who they are.
There’s probably some big companies in the background that may just very well need to be sort of Economic activities. Electronic payment conference towards financial stability in Iraq. So basically the slogan that they’ve been using is enhancing financial stability in Iraq.
It’s under the supervision of the central bank. So Alaq’s definitely involved in this. It says in cooperation with the association of banks. So that’s probably the private banks too.
The conference was attended by representatives of relevant iraqi ministries, governors of foreign central banks. So there’s many central banks involved. That’s pretty big. Diplomatic missions, international institutions operating in Iraq.
Electronic payment companies, banks and international financial institutions in addition to iraqi and foreign private banks operating in Iraq.
Prime Minister’s representative of the financial advisor Mohamed Saleh, said at the electronic payments towards financial stability in Iraq conference. So which was attended by the correspondent news on behalf of the prime minister. He goes on to say they give high appreciation to the international payments and Banking Technologies conference.
So banking and payments technologies. So some of those big international companies that are involved are going to be probably helping to facilitate Iraq’s transformation. Iraq is currently witnessing in the field of developing digital payments in the current information age and contributions to enhancing financial stability in the country. It says digital developments are one of the most important infrastructures protecting the national economy from external shocks and ensuring savings in the financial system, including banks, financial institutions and the financial and banking markets in general in the country of Iraq.
It’s indicating that the great boom in electronic payment systems that Iraq is witnessing and the economic transformation is based on cash and its risks. The vision policies launched by the government in implementing the government’s governance return to speed up public collection, protect public money, reduce corruption, because it’s one of the most important systems for the transition from cash to digital payments in an accelerated manner.
It’s almost to the point where they’re going to be having instantaneous payments cross border, 365 days a year, seven days a week, 24/7 no blackouts. That’s the type of fast that they’re going to be talking about. So his Excellency, the president of the arab monetary fund, he’s there. Remember that blockchain stuff?
Who owns the arab monitor, who owns the Buna platform, the arab monetary Fund. What does it have behind it? It’s got a blockchain component to it. Clearing digital currencies.
We all know about that. We talked, we’ve talked about that in our room. I think we could probably show that there’s some big banks, some of the biggest banks in the world. We’re talking about clearing through that platform, the Buna platform.
JPMorgan Chase bank was one that is involved in that. We confirm without a doubt that development is important for integration into the global economy.
So they’re going to be taking Iraq into the global economy, which is essential for digital diversity, and an important part which encourages the flow of foreign investment to our country. Development, innovation, e commerce and the digital development in Iraq.
We’re talking about the Arab monetary Fund, which is the president. You realise the Arab Monetary Fund is fully aware of what Alaq’s capabilities are.
The Excellency, the president of the Arab Monetary Fund, is quoted to be saying, effectively that Iraq has seemingly acquire the development part of the integration into the global economy and that it is essential for diversity for Iraq in doing so, as it will encourage foreign investment into Iraq, where it will be a part of the future development that innovation, e commerce and digital transformation. The IMF, owns the Buna platform, one of the digital solutions that will be used in regional area for clearing and settlements of digital cross border payments in what foreign currencies?
It says al Sudani’s advisor, Iraq is witnessing an economic transformation in a big leap with the spread of electronic payments. It says Iraq is witnessing a big leap through the spread of the use of the electronic payment cards after its economy was based on cash payments. If I buy cash, they’re going to do a lot less cash. So this great leap in number of electronic systems, Iraq is witnessing a shift from a cash based economy to a stimulating a great leap through spreading the use of electronic payment cards.
Saleh stated that the digital policies launched by the government a year ago are the most important issues brought by the government programme in implementing e-governance to protect public money from corruption.
One of the most important effects of this governance is determining the efficiency of payments, thus shifting from cash to digital payments on an ongoing basis and advancing electronic collection.
Basically what they’re saying is the digital transformation is here and it’s only growing. The meetings that are ongoing are packed with many that are from all over the world and a significant importance.
The country is going to be a part of the global financial system and will be an integral part of it. It will be literally an integral part when they’re shifting from a cash economy to a digitised cashless economy is going to need to have what everybody, same music article eight compliant currency on an international global forex market. That’s what we should expect.
Arab Monetary Fund. We talked about the Buna platform, we are working with Iraq to build national financial strategies. The need to work with Iraq to build a national strategy through well known and technical programmes. It goes on and says that the good design of payment systems and ensuring environmental control between them, with their interconnection with other systems such as credit systems, would enhance the efficiency of digital transformation and opportunities for economic growth, indicating that the digital transformation is a fundamental factor in reshaping the banking sector in the arab region.
He says the central bank governor, regarding working on many of these aspects, that is which having a tighten regulatory framework is crucial to enhance enhancing digital innovation as governments and should focus on equal opportunities, ensuring the regulations are consistent to reduce risks, etc. They already do digital transformation, about $115 billion a year, and now they’re pushing towards, by the 2026, they’ll be doing $325 billion.
They’re talking about mobile phones, digital networks, deposit operations, digital identities, including electronic fingerprint systems, on and on.
And what we can say is that the digital transformation is on the table in Iraq and it’s open for global attendance and I think it’s going to get global attention. And I would say that in the coming days, I’m looking forward to seeing what the results are for tomorrow. So it says the central bank electronic payment systems have contributed to enhancing Iraq’s compliance with anti-money laundering.
The governor of the central bank said that the world’s focus today is on implementing compliance rules in combating money laundering and the safety of banking operations, the safety of society, the safety of the economy, internal and external banking relations and others. Al Alak points out, when talking about electronic matters, the application is easy and possible, and therefore the level of compliance is much better than the usual traditional operations, rather faster and more accurate, and provides a complete detail of operations. That’s the way that tells me that’s where I get the idea that they have blockchain oriented systems and technologies ready to go and in place been tested and that they’re moving on to it. They don’t just tell you which one, which ones, but they alluded to because they work with certain companies.
They work with Ernst and Young, they work with all these other companies. They work with sustainable development companies. You see, the company called Giz from Germany is in town.
Iraq is basically embracing what sounds like to me, blockchain. for instance, like using personal cards, we have complete and direct analysis.
This is Alak talking in a question like manner, where they take place. Question what type of operations are taking place? Question do they comply with compliance standards sources and funds, etc. Well, in the process of analysing data, it’s possible to give us important results and redirect matters in a way that does not represent any type of fraud or hacking.
So he’s basically saying, we have a process, we have a new technology that we can alleviate all of those things. They can take care of compliance, where the funds coming from, they can analyse the data fast and furiously and they can see the results, redirect things. And basically, if there’s fraud, they have the ability for artificial intelligence tools, machine learning. All of those things are new technologies that are out there.
Iraq is embracing what I believe is blockchain technology. That’s what it appears, it looks like. Blockchain systems do have the capabilities that he’s talking about.
They’re talking about Iraq, literally Iraq is going global and to the international financial system. And with that Iraq has responsibility, and that responsibility will be defended by the central bank. And that responsibility is to have a stable exchange rate and to provide commerce through the country, in and out and across borders, and with efficiency and transparency. So basically, that’s what they’re going to have and that’s what they’re doing.
