The decision of the Central Bank of Iraq on trading in digital currencies

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Before commenting on the ruling on trading in digital currencies in Iraq, we should first point out the decision issued by the Central Bank of Iraq through its official website on digital currencies. It indicated that these currencies involve many risks. Especially with regard to fraud and electronic piracy, which prompted the Central Bank to issue a decision to generalize the ban on their use. They are virtual electronic currencies that are traded over the Internet only in the form of encrypted data and numbers and do not have a real physical presence, and allowing their use may lead to the extinction of paper currencies in the future.
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On the other hand, some digital currency specialists oppose the decision of the Central Bank of Iraq. Some believe that the bank has left no alternative to these digital currencies, especially with the presence of many Iraqi investors who trade using digital currencies for millions of dollars daily through global trading platforms. Therefore, some call for central banks in Arab countries to issue their own digital currencies to ensure the regulation of transactions that take place using them.

It is worth noting that the decision to ban and criminalize the rule of trading in digital currencies in Iraq came in accordance with the objectives of the banking sector in the State of Iraq to avoid the negative effects resulting from crimes of financing terrorism and money laundering using encrypted digital currencies. Therefore, the Central Bank of Iraq seeks to take several deterrent measures and implement laws to combat money laundering crimes so as not to threaten the stability of the financial situation in Iraq.