Iraq is moving toward a digital economy by replacing cash with E-payments shift. The government plans to end cash use in all institutions and public facilities. Officials describe this as the beginning of a new era of financial modernization.
The Prime Minister’s financial adviser, Mudhir Mohammed Saleh, said the e-payments shift will improve Iraq’s economy. He explained that digital payments will reduce corruption, strengthen transparency, and expand financial inclusion. He emphasized that the change will also simplify government disbursements.
For example, the new system will manage salaries, pensions, subsidies, and loans more quickly. Citizens will also pay fees and taxes through accurate and secure electronic channels. Saleh stressed that this change will improve liquidity and strengthen the management of the federal budget.
Furthermore, officials expect the e-payments shift to encourage more people to join the banking system. Many Iraqis currently remain outside formal financial networks. By using electronic systems, unbanked citizens will gain access to financial services. This will reduce the high costs linked to cash transactions.
In addition, Iraq already banned cash payments in state institutions. Since then, awareness campaigns have encouraged citizens to adopt digital systems. According to Rafidain Bank, electronic settlements for government institutions increased sharply. Transactions reached about two billion dollars in early 2025, which marked a 244 percent jump from the year before.
For many years, Iraq has been one of the most cash-dependent countries in the world. Analysts estimate that more than 90 percent of money circulates outside banks. They link this dependence to political unrest, sanctions, and repeated banking scandals. These events weakened trust in financial institutions and forced citizens to rely on cash.
Now, the e-payments shift represents a turning point. Officials argue that adopting electronic transactions will reshape Iraq’s economy. The transition will create greater financial stability, while also promoting trust in banks and institutions. With more citizens using digital platforms, Iraq aims to close the gap between global standards and its current system.
The government believes that Iraq’s new path toward electronic payments will secure long-term growth. It will also improve governance, empower citizens, and transform financial practices.