Central Bank Governor: We have established rules and guidelines to support electronic payments.
Central Bank Governor: We have established rules and guidelines to support electronic payments.
2025-08-07
The Governor of the Central Bank, Ali Al-Alaq, announced on Thursday the development of rules and guidelines supporting electronic payments. He also indicated that work is underway to consolidate the electronic payment infrastructure through five projects. Speaking at the Comprehensive E-Payment Transformation Conference, Al-Alaq stated that “digital transformation has become a strategic choice in building a modern state, a diversified economy, and transparent government services. International experience has proven that digitization is not a luxury, but rather a key driver of sustainable development, improving the work environment, empowering youth, and developing vital sectors.”
He explained, “We are facing a historic opportunity to make up for lost time and launch a clear vision for an economy capable of meeting challenges, combating corruption, and creating an environment that is attractive to investment.”
As part of the plan to move towards digital transformation and electronic payments, Al-Alaq explained that “the Central Bank has worked to develop electronic payments in an integrated and secure manner, including payment and settlement in accordance with the highest international standards and practices.” He emphasized that “these systems have contributed to enhancing the efficiency and reliability of financial operations and supported the implementation of strategic initiatives in partnership with the government, including salary localization, electronic fortification, and development financing programs.”
He also noted that “the Central Bank, based on its role in managing monetary policy and regulating the financial and banking sector, is working within its plan to consolidate the electronic payment infrastructure by implementing a number of national projects.”
He continued, “The most prominent of these projects are: First, the instant payments system, which allows for 24-hour financial transfers, provides users with a seamless experience, and provides financial institutions with advanced services. The second project is the unified gateway for payments and government entities, which facilitates payment procedures, limits manipulation, and increases trust.”
He added, “The third project is the National Card Scheme, which builds an independent national system that preserves digital sovereignty, reduces reliance on external systems, and opens the door to products that suit the local market. The fourth project is developing the national department to support the significant increase in transaction volume and ensure the speed and stability of operations within a secure environment.”
He also noted that “the fifth project is to establish partnerships with regional and international institutions and deepen cooperation with global payment networks to leverage their advanced tools.”
Al-Alaq also explained that “these steps are part of a comprehensive national strategy to reshape the relationship between the state and society, enhance transparency in service provision, and achieve a balance between technological development and financial stability.”
He stated that “work is underway on an in-depth study to regulate crypto-asset trading, taking into account the challenges, risks, and opportunities, ensuring financial stability requirements, and strengthening systems to combat fraud, money laundering, and terrorist financing.”
He also stated that “every 10% increase in digital payments can contribute to the GDP, underscoring the importance of transformation in supporting economic growth.” He emphasized “supporting banks and payment companies in accelerating infrastructure development, providing reliable communication networks, encouraging young developers to create applications that comply with security standards, and supporting technology companies specializing in cybersecurity.”
The Central Bank Governor called on the media and educational institutions to “launch awareness programs explaining the benefits of electronic payments and the risks of dealing outside the official framework, to build an integrated system characterized by efficiency and transparency, placing Iraq among the ranks of advanced countries.”
He added, “The success of the e-transformation is not achieved solely through infrastructure, but rather requires a genuine partnership between various stakeholders, including government agencies, the banking sector, technology companies, and civil society organizations. Raising community awareness of e-payments and alleviating concerns is also a crucial element in building trust.”
He concluded his remarks by saying, “The Central Bank affirms its full commitment to continuing its efforts to promote a secure environment, as we believe that government payments, collection, and electronic fortification are essential to reforming financial management, enhancing transparency, stimulating investment, and expanding the tax base.”
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