Dollar hits 1,680 Iraqi dinars in free exchange market

BAGHDAD,— Iraq’s Council of Ministers has set a new exchange rate for the dinar, fixing it at 1,520 dinars per US dollar, a drop of nearly 14.5% from the earlier official rate.

The move was confirmed in a Council of Ministers decision and a statement from the Finance Ministry.

Economists linked the currency cut to disrupted oil sales, Iraq’s main source of income, caused by the US-Israeli war on Iran.

The decision was passed on Tuesday and took effect Wednesday. Under the new structure, the Finance Ministry will buy dollars at 1,500 dinars each, while banks and non-bank financial firms will sell dollars to end users at 1,510 dinars.

Iraqi analyst Mohammed al-Saffar described the devaluation as a fiscal response to the hit Iraq’s oil income took from the Iran war and halted exports.

He noted it gives the government more dinars per dollar of oil revenue, though it pushes up import costs and cuts household buying power.

In local currency markets, traders in Sulaimani city in Iraq’s Kurdistan Region, told iKurd news the dollar was trading at 1,680 dinars, though trading had nearly stopped as people waited to see how the situation would unfold.

Four members of parliament’s finance committee told Reuters on Tuesday that officials were weighing a further rate adjustment.

The draft budget is built on an assumed oil price of $58 a barrel, with spending set at 217 trillion dinars, close to $166 billion, and a deficit exceeding 40 trillion dinars, the lawmakers said.

The budget also projects crude exports of about 4 million barrels daily, including output from the Kurdistan region. Oil sales make up most of Iraq’s state revenue.

Iraq has been looking for alternative shipping routes since Gulf crude exports were disrupted during the Iran war.

That disruption pushed global oil prices past $100 a barrel and dropped Iraq’s exports to around 2.34 million barrels per day in August, down from over 3.6 million bpd before the conflict began.

(With files from Reuters)

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ERBIL,— Iraq’s Kurdistan Regional Government owes more than $9 billion dollars to gas supplier Dana Gas of the United Arab Emirates and to local power companies, a top KRG official said Thursday, noting that electricity income falls short of covering the sector’s costs.

Aziz Ahmad, deputy chief of staff to caretaker Kurdistan Region Prime Minister Masrour Barzani, told Rudaw media that the electricity sector carries a large debt load topping nine billion dollars.

Ahmad said the sector’s costs include gas bought from the Khor Mor field, which Dana Gas runs near Sulaimani city, along with power plant operating costs, grid maintenance and expansion, and the Runaki project.

Runaki is the KRG’s plan to bring round-the-clock power to the region.

He said those four cost areas add up to an average of $220 million each month, while Runaki brings in less than half that amount in revenue.

Ahmad said the government owes money to 15 power stations. He named Erbil-based firms Mass and Kar, along with Sulaimani-based Qaiwan, as suppliers of 97 percent of the region’s electricity. He said those three companies, along with Dana Gas, account for the bulk of the $9 billion debt.

Ahmad said officials need to hold honest talks with the companies about paying back what is owed. He said the firms have asked in writing for their contracts to be reviewed, and the KRG Council of Ministers has approved that request.

In early August, the KRG rolled out a 50 percent discount on electricity debts built up before Runaki began, with the offer first set to end September 10. The region’s electricity ministry said last week that about 800,000 customers had paid off their debts under the program.

Ahmad said the government brought in roughly $278.6 million in August and September combined, counting Runaki fees and old debt payments.

He said the cabinet decided Wednesday to push the discount deadline back to October 18. Ahmad called it the last chance, saying any remaining balances after that date will turn into monthly payment plans automatically.

(With files from Rudaw)

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KRG to Baghdad: 14.14%, Not 12.68%

ERBIL,— The Kurdistan Regional Government’s caretaker cabinet on Wednesday pushed back against a federal decision that set the region’s share of Iraq’s population at 12.68%, a figure tied directly to how much funding the region will get from the 2027 budget.

The cabinet ordered officials to pursue legal steps to force Baghdad to use the results of the 2024 census instead.

In a statement issued after its weekly session, the Council of Ministers said the approved results of the General Population and Housing Census put the Kurdistan Region’s share of the country’s population at 14.14%, not 12.68%.

Ministers called getting the population ratio right a “fundamental issue” that shapes the region’s financial and constitutional rights.

They said the number affects the federal budget, how public money is divided, the region’s seats in federal bodies, and its representation in Iraqi embassies abroad.

The dispute stems from Iraq’s continued use of population figures from the 2022 federal budget law, which the Kurdistan Region says are outdated and do not match the 2024 census.

That census counted Iraq’s total population at 46,118,793 people, not including foreign residents, figures released by the state-run Iraqi News Agency.

The Kurdistan Region Statistics Office put the region’s population at 6,519,129, which it says works out to a 14.24% share under the 2024 numbers.

Erbil and Baghdad have clashed over budget shares since 2014, when a fight over the Kurdistan Region’s independent oil exports to Turkey turned into a long-running political and financial standoff.

That standoff has led to late and irregular paychecks for public workers in the Kurdistan Region, with some employees going without pay for several months at a stretch in multiple years.

Promotions have also been frozen, and money has been cut from pension funds.

Under the three-year federal budget law passed in 2022, the Kurdistan Region’s share was fixed at about 12.5% once so-called sovereign spending, such as defense and foreign affairs, was subtracted.

Responding to the lower federal number, the Council of Ministers told the Ministry of Planning, the Ministry of Justice and the Cabinet Secretariat on Wednesday to work together and use every constitutional, legal and judicial option available to fix the percentage and make sure the official census results are followed.

The decision comes as Erbil finalizes its demands ahead of new budget legislation, which the federal government is drafting and hopes to complete before the end of the year.

A source at the region’s finance ministry told Rudaw TV earlier this month that a KRG delegation’s recent trip to Baghdad had laid the groundwork for a month of in-depth budget talks.

“We are heading to a month of extensive discussions with Baghdad,” the source said, adding that the talks would cover the region’s financial needs and legal duties in full.

The source also addressed federal plans to switch from traditional budgeting to a program-and-performance-based model, saying it remains a pilot project limited to Diwaniya and Salahadin provinces and has no connection to the Kurdistan Region’s budget share.

(With files from Rudaw)

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ERBIL,—Iraqi Kurdistan has officially ended its cash-based salary system for public workers, caretaker Prime Minister Masrour Barzani announced Tuesday, as one million employees begin receiving pay through bank cards instead.

The change comes through the “MyAccount” program, also known by its Kurdish and Arabic names, “Hejmarî min” and “Hisabi” Barzani said in a statement on Tuesday, one million people on the Kurdistan Regional Government’s payroll will start receiving wages electronically through banks licensed by the Central Bank of Iraq.

He called MyAccount the base program behind the government’s push for wider financial inclusion. He said the system gives residents access to credit and modern banking tools while making it simpler for the government to send out electronic payments.

The KRG launched MyAccount in 2023 to place public salaries directly into personal bank accounts instead of handing out cash.

The program gives workers access to ATMs, bank cards, credit lines and other banking services. It also lets the government handle more payments electronically.

Not everyone supports the plan. In 2025, Noor Fareeq, a member of the opposition National Stance Movement, accused the KRG of worsening the region’s economy on purpose.

She criticized MyAccount directly, calling it a “Barzani tribal project” meant to control worker salaries and expand political power over public employees.

Barzani’s announcement follows an earlier order from the Kurdistan finance ministry, which had told public workers to sign up with one of eight banks taking part in MyAccount by August 31.

Officials warned that anyone who missed the deadline could have their salary paused.

The move toward electronic banking matters because Baghdad has long pushed for it as part of financial talks with Erbil.

The Central Bank of Iraq has backed a similar system called Tawtin, aimed at cutting the cost of handing out cash, keeping money inside the banking system, and giving workers access to loans and digital payments.

Under a 2025 deal between the Kurdistan government and Baghdad, both sides formed a joint committee to finish moving Kurdistan salaries into the banking system within three months.

Baghdad had pressed for salaries to fall under its Tawtin system, while Erbil continued backing MyAccount, saying it was built with the Central Bank of Iraq and offers more services for less money.

By August, the KRG said more than 900,000 public workers had already received bank cards through MyAccount. Banks taking part in the program had also installed close to 700 ATMs across the region.

Barzani said the shift means the “days of citizens standing in long queues outside government buildings waiting for cash handouts are over.”

He said MyAccount has given workers more control over their money and access to a growing number of ATMs across the region.

For years, workers in the Kurdish region have dealt with pay delays of three months or longer, with some months never paid at all.

Teachers and other public servants have held repeated protests over unpaid wages.

Watchdog groups and critics describe Kurdistan as one of the more corrupt regions in Iraq, pointing to billions of dollars in oil revenue that cannot be accounted for.

Kurdish lawmakers, oversight groups and leaked records say large amounts of money from oil sales have disappeared. Critics also allege that officials in the region have smuggled out millions of barrels of crude oil.

The Barzani family, which controls much of the region’s politics, has faced repeated nepotism claims. Critics and observers say the family has built significant personal wealth from oil sales instead of using that money for public services.

(With files from Rudaw | Agencies)

Copyright © 2026 iKurd.net. All rights reserved.

KDP’s tribal ‘My Account’ program aims to control Kurdistan pay system: opposition

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Removing Three Zeros from the Iraqi Dinar: Between Economic Benefits and Legal Risks

Luqman Mustafa Salih | Exclusive to iKurd.net
Translated from Kurdish Awene

Introduction

The issue of removing zeros from the Iraqi dinar is one of the important economic and financial topics that, whenever it comes up for discussion, raises a major question: Would removing three zeros from the Iraqi currency strengthen the dinar and improve the economic situation, or is it simply a technical change that, by itself, does not change the currency’s real value?

From an economic perspective, removing zeros does not mean that the dinar’s real value will automatically increase. For example, if 1,000 dinars become 1 new dinar, provided that all prices, salaries, debts, and assets are changed at the same rate, the real value of a person’s wealth does not change.

The Central Bank of Iraq, in a document specifically related to the “Three-Zero Removal” project in 2012, described this project as part of restructuring the currency system and addressing the large number of currency units and the large figures associated with cash transactions.

First: Benefits of Removing Three Zeros

1. It makes cash transactions easier to handle. Large dinar figures in daily life can make it more difficult to calculate and record transactions. Reducing the number of zeros can make prices and account figures easier to write and read.

2. It reduces the cost and size of cash transactions. In currency restructuring projects, reducing the number of zeros can have a practical effect on the printing, transportation, storage, and counting of cash.

3. It can help organize the accounting and banking system. Smaller numbers can make some processes easier in banking and accounting systems, especially in digital systems.

4. If this project is implemented together with banking reform, control of money supply growth, efforts to reduce corruption, stronger production, and stable fiscal policy, it can become part of the process of modernizing the country’s financial and banking system.

Second: Disadvantages and Risks

Along with these benefits, removing zeros also carries risks, especially if it is implemented at the wrong time and without adequate preparation.

1. There is a risk that the public could lose confidence in the currency. If citizens believe that removing zeros means their assets have lost value, they may change their behavior and move toward the dollar, gold, or foreign currencies.

2. There is a risk of errors in converting prices and accounts. When converting from the old currency to the new one, the conversion rate must be clearly and legally established so that no party can harm citizens through improper rounding or price changes.

For example, if 1,000 old dinars = 1 new dinar, then a salary of 1,500,000 dinars would become 1,500 new dinars. However, the same principle must apply to prices, rent, debts, savings, and all financial obligations.

Third: The Legal Aspect

From a legal perspective, the main question is: Who has the authority to issue the Iraqi currency and change its form and denominations?

According to the amended Central Bank of Iraq Law No. 56 of 2004, the Central Bank of Iraq has the authority to issue and manage the Iraqi currency, and Articles 32 and 33 define the framework of this authority.

Therefore, removing zeros should not be viewed merely as “changing the numbers.” Rather, it is a legal and financial process that requires clear regulation of the rights of money holders and financial obligations.

Fourth: A Legal Example

Let us assume that a new law is passed and it is decided that:

1,000 old dinars = 1 new dinar.

A person has 50,000,000 dinars in a bank account.

According to the conversion rate:

50,000,000 old dinars ÷ 1,000 = 50,000 new dinars.

Here, the law must clearly establish that changing the numbers must not reduce the financial rights of the money holder.

The same principle must also apply to debts.

For example, if a person owes 200,000,000 dinars, after removing three zeros, the debt should become:

200,000,000 ÷ 1,000 = 200,000 new dinars.

If the law is improperly implemented and one of the parties is able to increase or decrease the amount of the debt because of the change in the numbers, this could become a source of disputes and lawsuits.

Fifth: Contracts and Citizens’ Rights

An important legal question is: What happens to existing contracts?

For example, if a contract was signed for 300 million dinars and the removal of zeros is implemented afterward, the law or regulations must clearly state that:

300 million old dinars = 300 thousand new dinars.

However, this is only a numerical conversion, not a change in the actual value of the obligation.

The same principle must apply to salaries, pensions, debts, bank savings, rent, taxes, companies, and all other financial transactions.

Sixth: Removing Zeros and Strengthening the Dinar

One common misunderstanding is that removing three zeros from the dinar will automatically make the dinar stronger.

This is not necessarily true.

If $1 = 1,310 dinars, and only three zeros are removed, then at the same rate:

$1 = 1.31 new dinars.

At the same time, the dinar’s purchasing power does not automatically increase.

In recent years, the Central Bank of Iraq has continued to emphasize currency stability and maintaining general price stability, and in 2025 it stated that there was no need to change the official exchange rate of the dinar.

Conclusion

Removing three zeros from the Iraqi dinar, if implemented according to a sound economic and legal plan and with full preparation, can provide benefits in organizing the currency system, making transactions easier, and reducing the size of the currency figures.

However, if it is not accompanied by economic, banking, and financial reforms, removing zeros alone cannot solve the dinar’s problems.

From a legal perspective, the most important principle is that changing the form of the currency must not alter the financial rights of citizens. Therefore, the law must clearly establish the conversion rate, the transition period, the rights of money holders, and the treatment of contracts, debts, bank savings, and procedures for resolving disputes.

In the end, removing zeros is a tool for organizing the currency, not a magic solution to strengthen the economy. Strengthening the dinar requires increased production, higher domestic income, reduced dependence on oil, banking reform, stronger control of corruption, and stable fiscal and monetary policies.

Sources
Central Bank of Iraq Law No. 56 of 2004, as amended. (Central Bank)
Central Bank of Iraq, “Restructuring the Iraqi Currency — Three-Zero Removal Project,” 2012. (Central Bank)
Central Bank of Iraq, documents and explanations related to the issuance and management of currency. (Central Bank)
Central Bank of Iraq, explanation of exchange-rate policy and the stability of the dinar exchange rate, 2025. (Central Bank)

This article was originally published in the Kurdish language in Awene Newspaper on August 25, 2026, translated by iKurd.net.

The views expressed are solely those of the author and do not necessarily reflect the opinions of iKurd.net or its editorial team.

Copyright © 2026 iKurd.net. All rights reserved

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BAGHDAD,— Iraqi officials and economists are once again debating whether a digital dinar could help the government pay public employee salaries in the coming months, as state revenue falls and financial pressure builds.

Some economists caution the move could create new risks rather than solve the underlying problem.

Economic affairs expert Haider Al-Sheikh said Iraq’s current financial situation, marked by falling revenue and a shrinking economy, is not the right environment for introducing a digital currency to cover salary payments.

Speaking to Baghdad Today on Saturday, August 8, 2026, Al-Sheikh said domestic debt has climbed past 105 trillion Iraqi dinars.

He said that level of financial strain means any new monetary tool, including a digital currency, needs thorough study before being put into use.

He said the Central Bank of Iraq likely recognizes that adopting a digital currency could limit its ability to closely manage the money supply and liquidity in the country.

He also flagged concerns about cryptocurrencies broadly, calling them too unstable to serve as a lasting store of value.

A poorly planned rollout of digital currency, he added, could hurt the dinar’s value against the U.S. dollar and other foreign currencies, since Iraq’s market reacts sharply to shifts in exchange rates and cash supply.

Al-Sheikh also raised concerns beyond monetary policy. He said a digital dinar could make it harder for the Central Bank to fight corruption, smuggling, money laundering and financing of illegal activity, and would require a full legal, regulatory and technical system to be built first.

The discussion comes as Iraq continues to struggle with unstable revenue, heavy reliance on oil income to fund its budget, and rising domestic debt.

Backers of digital currency argue it could modernize the financial system, cut transaction costs and expand access to banking.

Opponents say success depends on first building the banking, legal and regulatory systems needed to manage the risks.

A central bank digital currency differs from decentralized cryptocurrencies. If Iraq adopts a digital dinar, it would remain part of the official monetary system under the supervision of the monetary authority, meaning its risks and benefits would depend on how it is designed and run.

A political analyst told iKurd.net that a government-issued digital currency poses a threat to financial freedom, saying it would leave people dependent on government decisions and that citizens should retain the right to use cash.

The analyst said the government could freeze or seize funds at will, turning a wealthy person into someone with nothing within minutes.

Henase said Bitcoin BTC remains the only digital currency worldwide that is truly decentralized, independent and rooted in its founding principles, with no company or government anywhere in the world holding control over it.

She said it has come to be viewed as digital gold, a genuine store of value that stands apart from centralized ownership.

Bitcoin, she added, cannot be seized or confiscated, cementing its reputation as digital gold, and said it is even better than gold itself, since gold is difficult to move or transport.

Iraqi MP Proposes Digital Currency After Salary Payment Delays

Saad Al-Awadi, deputy head of the National Approach parliamentary bloc, proposed a plan Friday to secure salary payments for employees and retirees through a digital dinar, aiming to end what he called Iraq’s cash crisis.

In a statement, Al-Awadi described the plan as a broad economic proposal to solve the cash liquidity shortage and guarantee steady salary payments by launching a digital Iraqi dinar, allowing employees to receive pay without relying on paper currency.

He said the plan would protect workers from delayed salaries and cash shortages at banks by depositing pay into secure digital wallets linked to bank accounts, letting people spend their salaries immediately on goods and electronic payments without waiting for physical cash.

Al-Awadi said the cash shortage stems not from a lack of resources but from paper currency being held outside the banking system in large amounts.

He said a Central Bank-approved digital dinar would end salary delays, lower the cost of printing and transporting cash, and protect people’s purchasing power without relying on domestic borrowing.

He said his plan also calls for requiring businesses and service providers to accept digital payments, along with incentives and government guarantees to rebuild trust in the banking sector.

Al-Awadi called on the government, the Central Bank and relevant parliamentary committees to hold an urgent joint meeting to set up the legal and technical rules needed to carry out the plan.

Iraq currently has no official digital payment platforms or electronic trading systems. Cryptocurrencies used elsewhere in the world, including Bitcoin, are still not officially accepted for purchases, sales or cash transactions in the country.

(With files from baghdadtoday.news | Agencies)

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Why Do Iraqis and Citizens of the Kurdistan Region Not Trust Banks? A Legal and Political Analysis

Luqman Mustafa Salih | Exclusive to iKurd.net
Translated by iKurd.net from Kurdish Awene

Trust in the banking system is one of the main indicators of political and economic stability in any country. In countries where citizens trust banks, individual wealth flows into the banking system and becomes a source of investment and economic development.

However, in Iraq and the Kurdistan Region, despite the growth in the number of banks and the expansion of financial services, a large part of the population still keeps their money outside the banking system.

This situation is not only a banking problem, but also the result of a combination of historical, legal, and political factors.

First, Iraq and the Kurdistan Region have gone through decades of war, political crises, government changes, and financial instability. These experiences have made many citizens believe that keeping money at home is safer than depositing it in banks.

Second, weak enforcement of laws. According to the Central Bank of Iraq Law No. (56) of 2004, the Central Bank is responsible for maintaining the stability of the banking system and supervising banks.

Also, the Banking Law No. (94) of 2004 defines the rules governing how banks operate and protects customers’ rights. However, in the perception of many citizens, there is still a gap between what the law states and how it is actually implemented.

Third, corruption and lack of transparency. No banking system can succeed without public trust. Whenever citizens feel there is weak oversight, corruption, or a lack of clarity in financial transactions, they tend to withdraw from the banking system.

Fourth, experiences of financial crises, especially in the Kurdistan Region. After the 2014 financial crisis and delays in salary payments, many citizens felt the weakness of financial institutions in terms of capacity and stability. Although banks were not directly responsible, this situation still had a negative impact on the level of public trust.

Fifth, weak banking culture. In most commercial and private transactions, cash is still dominant. This has limited citizens’ daily interaction with banks and reduced reliance on banking services.

From a legal perspective, protecting deposits and customers’ rights is the most important foundation for building trust.

Although the Central Bank of Iraq has taken various steps to supervise and regulate the banking sector, strengthening the rule of law, increasing transparency, speeding up the resolution of customer complaints, and developing an effective deposit protection system remain essential priorities.

What is the solution?

The experience of developed countries shows that trust is not built through orders or slogans, but through three main pillars:

• Strong law: A “deposit insurance” law must be enacted, as in many countries worldwide, to ensure that citizens are reassured that if a bank fails, their money will not be lost.
• Independent judiciary: To ensure the quick and fair resolution of disputes between customers and banks.
• Effective and transparent supervision: The Central Bank should publish regular reports on the condition and performance of banks.

In conclusion, restoring trust in banks is directly connected to restoring trust in state institutions in general. When citizens see that the law is applied equally to everyone, they will feel confident enough to take their money out from under their mattresses and place it in banks.

Sources:
– Central Bank of Iraq Law No. 56 of 2004.
– Banking Law No. 94 of 2004.
– Iraqi Constitution of 2005, articles related to the economy and private property.
– Central Bank guidelines regarding customer protection.
– World Bank and IMF reports on banking sector reform in Iraq.

This article was originally published in the Kurdish language in Awene Newspaper on June 1, 2026.

The opinions are those of the writer and do not necessarily represent the views of iKurd.net or its editors.

Copyright © 2026 iKurd.net. All rights reserved.

The Dangers of Banning Cash: A Threat to Financial Freedom

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Iraq’s Cash Habit: Why Digital Payments Still Struggle to Take Root

BAGHDAD/ERBIL,— In Iraq, money under the pillow is more than a metaphor. It is a habit. Despite official calls for digital transformation, most Iraqis still withdraw salaries in cash, pay for daily purchases with banknotes, and stash their savings at home rather than in banks.

Across the region, a swipe or tap is enough to pay for groceries, coffee, or a taxi. In Iraq, this remains the exception. Electronic payments are often seen as risky, confusing, or unnecessary.

At the heart of Iraq’s cash culture is trust, or the lack of it. Years of political instability, economic shocks, and frustrating banking experiences have made many citizens wary of depositing money. Reports of unexplained account deductions, transaction errors, and slow complaint handling only reinforce the belief that money is safer under the pillow.

Even when digital payments offer convenience, one bad experience is often enough to push people back to cash. For many Iraqis, the question is simple. Is my money truly safe, and can I get it when I need it?

Keeping money at home is comfortable, but it is costly. Large sums remain outside banks, limiting the financial system’s ability to fund businesses, projects, or loans.

Inflation slowly erodes savings, while theft, fire, or accidents can wipe out years of careful accumulation.

Economists warn that when cash is hoarded at home, it slows economic circulation. Funds that could fuel businesses or investment projects instead sit idle, benefiting no one beyond the individual saver.

Even Iraqis willing to use cards face practical barriers. Many shops, fuel stations, and markets still lack point-of-sale devices. Customers often need to travel just to find a place that accepts a card.

This creates a self-reinforcing cycle. Merchants do not invest in terminals without enough customers, and customers avoid cards if few places accept them. In neighboring countries, governments and banks coordinated a push, with terminals in stores, electronic payments linked to public services, and card use normalized in daily life. Without that coordination, adoption stalls.

Cash may feel safe, but it comes at the cost of insight. Electronic transactions leave digital footprints, revealing spending patterns, consumer demand, and economic trends.

Cash leaves no trace, making it harder for governments to plan, tax, or regulate effectively. A robust digital payment system could improve transparency, boost governance, and support economic growth.

The greatest risk of a cashless society is the possibility that people’s wealth could be seized without warning. With government-issued digital currencies, authorities have access to an individual’s full financial history. This creates the potential for people to be targeted because of their political views, associations, or activities.

The government has made some progress, linking certain salaries, grants, and fees to cards, and encouraging banks to issue more cards and expand ATM networks.

Yet major obstacles remain. Trust and financial literacy are limited, and banking procedures remain opaque for many. Concepts like fees, transfers, or digital security are often confusing.

Reforms are needed. Lower fees, simpler processes, strict consumer protection, and responsive complaint mechanisms would help. Public awareness campaigns could also show citizens the difference between cash under the pillow and money working in the economy.

Moving Iraq from a cash-dominated society to a digital economy will not happen overnight. It requires investment in infrastructure, clear regulations, education campaigns, and strong consumer protections.

Electronic payments are more than technology. They are a shift in how money circulates and how citizens interact with financial institutions. If Iraq can build trust and expand access, card payments could become as ordinary as pulling money from a pillow.

Until then, millions of Iraqis will continue to feel safer keeping cash close at hand, even as it quietly erodes purchasing power and limits the country’s economic potential. The challenge is turning the pillow into a bank, without losing the comfort of security that generations have relied on.

(With files from BaghdadToday)

Copyright © 2026 iKurd.net. All rights reserved.

Why Iraqis and Kurdistan Citizens Don’t Trust Banks?

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ERBIL,— The Kurdistan Regional Government launched a new digital platform for government bill payments on Tuesday, marking a major step toward modernizing public services in the region.

The e-Psûle system was unveiled in a ceremony attended by Kurdistan Region caretaker Prime Minister Masrour Barzani and Ali Al-Allaq, Governor of the Central Bank of Iraq, alongside investors and business leaders from across Iraq and the Kurdistan Region.

Kurdistan’s prime minister said the launch reflects the government’s ongoing effort to expand digital governance and reform public-sector services.

The platform, developed and fully owned by the KRG, allows citizens to pay government bills electronically, 24 hours a day, seven days a week, without any extra fees or commissions.

Officials said e-Psûle is designed to simplify payments and improve efficiency by providing multiple digital channels for citizens to settle bills securely.

The system aims to replace the decades-long reliance on cash payments and in-person office visits, which have often caused long waits, high administrative costs, and delays for both citizens and government institutions.

The platform can be accessed through mobile applications, participating digital wallets, and partner banks. Payments are processed securely, and digital receipts are issued immediately and stored for future reference.

Initially, the system has been integrated with the Ministry of Electricity, allowing customers to pay Runaki electricity bills online.

Officials said prioritizing the electricity sector would ensure broad public adoption and showcase the platform’s capabilities in a high-demand service area.

Some critics, however, have raised concerns over potential risks to citizen funds. They argue that digitizing government payments and banking sector could give Kurdish authorities the ability to block the accounts of journalists, critics, and activists.

A political analyst Henase Karim told iKurd News that while people in the region are often unable to receive salaries for months or even years, the government is creating a digital system for bill payments.

She described the initiative as part of a “war on cash,” warning that banks and financial institutions run by current regional rulers, who are routinely accused of mass corruption, cannot be trusted.

KRG officials defended the platform, saying it is fully controlled by users. Transactions are initiated by citizens only, and no automatic deductions occur from bank accounts or digital wallets.

The platform reportedly guarantees zero transaction fees for all payment channels, emphasizing that users maintain full control over their payments.

(With files from K24)

Copyright © 2026 iKurd.net. All rights reserved.

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The Rise of Government Fiat Digital Currencies: A Threat to Financial Freedom

Sara Hussein | Exclusive to iKurd.net

In an era of rapid technological advancement, digital payment systems and cashless transactions have become an undeniable part of everyday life. Governments, businesses, and financial institutions around the world are steadily pushing for a shift from physical cash to government fiat digital currencies (GFDCs). While advocates argue that this transformation offers increased efficiency, convenience, and security, there is a darker side to the rise of a cashless society. Behind the promise of innovation and convenience lies a growing threat to personal freedom and financial sovereignty.

The Silent War on Cash

The transition toward government fiat digital currencies did not begin overnight. It started quietly, with the gradual withdrawal of high-value banknotes from circulation. In Europe, for instance, when the euro first came into existence, there were €500 and €200 notes in common use.

Over time, however, these large denominations were slowly phased out under the pretext of combating money laundering and terrorism financing. Today, only €100 and €50 notes remain in regular circulation, and even those could eventually face the same fate. The €200 notes are also rarely seen in everyday transactions, making them increasingly uncommon.

This process represents the opening moves in what can only be described as a war on cash, which is a deliberate campaign to make physical money scarce, inconvenient, and eventually obsolete. Each reduction in available denominations further restricts the public’s ability to store and transfer wealth privately, nudging society ever closer to complete dependence on government-controlled digital systems.

The European Central Bank (ECB) has made its intentions clear. It is actively developing the digital euro, a fiat digital currency backed by the central bank that would serve as the official digital money for the eurozone.

The ECB has identified 2029 as a realistic timeline for launching the digital euro. In October 2025, the bank announced it could begin a pilot program by 2027, provided it receives timely approval from lawmakers, which it considers vital for what it calls “financial autonomy” for the eurozone.

Yet, behind this narrative of progress lies something far more concerning. Once citizens’ money exists only in state-controlled digital form, autonomy effectively disappears. The power to monitor, restrict, or even erase access to personal funds moves entirely into the hands of authorities. When that happens, financial freedom, along with individual liberty, becomes a privilege granted at the discretion of the state.

The Problem: Financial Control and Surveillance

At the heart of the push for a cashless society is the desire for control, not just over economic activity but also over the people themselves. Unlike cash, which provides anonymity and privacy, fiat digital currency transactions leave an indelible trail.

Every purchase, withdrawal, and transfer can be tracked, monitored, and analyzed by governments and their financial institutions. While this may sound like a necessary step toward ensuring tax compliance, anti-money laundering measures, and crime prevention, it also opens the door for mass surveillance and unprecedented control over individuals’ financial lives.

In a world where cash is no longer an option, everything we buy, sell, and transfer becomes subject to scrutiny, creating the potential for state overreach. Governments could, with alarming ease, freeze accounts, seize assets, or restrict access to funds for any number of reasons, including political dissent.

For example, consider recent protests around the world. In moments of civil unrest, governments may invoke emergency powers to block access to digital accounts or seize funds under the pretext of national security. With no physical cash to fall back on, activists or protesters could find themselves financially crippled, unable to buy food, rent, or even pay for basic utilities.

The Risk of Arbitrary Seizure and Confiscation

The most significant danger of a cashless society is the potential for arbitrary confiscation of people’s wealth. With government fiat digital currencies, authorities can access an individual’s entire financial history. This opens the door for people to be targeted based on their political beliefs, affiliations, or actions.

Take, for example, the case of someone expressing dissent against government policies, whether through protests, social media campaigns, or legal activism. If their political views are deemed a threat, they could face the possibility of having their fiat digital currency accounts frozen or confiscated without due process. Innocent people, caught in the crossfire of political or ideological conflicts, could find their accounts seized in an instant, rendering them unable to access their hard-earned savings.

The chilling effect is not limited to protesters or dissidents; anyone who steps out of line in the eyes of the government could lose access to their money at the whim of authorities.

A millionaire who speaks out against corruption or challenges an unjust system could find themselves suddenly penniless. One can imagine the nightmare scenario where a political figure or businessperson is publicly targeted, their entire wealth stripped away within minutes, leaving them homeless and destitute.

Loss of Autonomy and Privacy

When cash is banned, the last vestige of financial autonomy is gone. With government fiat digital currencies, every financial action is visible, stored, and can be monitored or even manipulated. The right to privacy is one of the most basic human freedoms, yet a shift toward a state-controlled digital monetary system is inherently incompatible with this principle.

While supporters argue that fiat digital currencies provide transparency and security, what they often fail to consider is the inherent loss of personal freedom. In a world where governments can monitor spending habits, regulate financial transactions, and even prevent certain types of purchases, individuals are no longer free to make choices outside the control of the state.

The ability to buy or sell is no longer in the hands of the people but under the thumb of central authorities, who can decide who is worthy of access to financial resources and who is not.

In a cashless society, financial exclusion becomes a reality. The elderly, the poor, and people living in rural or underserved areas may have limited access to technology, leaving them excluded from the system altogether. If all transactions must be conducted digitally, those who cannot afford smartphones, bank accounts, or internet access will be left behind, effectively disenfranchising millions.

The Path to Financial Slavery

Ultimately, the push for a cashless society threatens to strip individuals of their financial sovereignty. The concept of personal wealth could become a fleeting illusion.

In a system where fiat digital money can be frozen, confiscated, or rendered worthless at the stroke of a keyboard, people no longer own their money; they merely control it until someone more powerful decides otherwise. This creates a terrifying new paradigm, where wealth and assets are increasingly vulnerable to state seizure or institutional control.

If governments can dictate who can access their money and for what purposes, the risk of financial enslavement becomes tangible. People could be subjected to penalties or punishment simply for expressing dissent, engaging in civil disobedience, or questioning the status quo. The freedom to spend, save, or invest without fear of reprisal becomes a distant memory.

The People Fight Back: The Birth of Bitcoin, Digital Cash for the People

But the people are not as naïve as governments may think. History shows that when authority overreaches, innovation and resistance follow. In response to the growing instability of government fiat currencies, printed endlessly and losing value year after year, and to the increasing control over citizens’ financial lives, a group of individuals took matters into their own hands.

In 2009, an anonymous person or team known as Satoshi Nakamoto created a revolutionary digital currency called Bitcoin (BTC), often referred to as Digital Cash. Bitcoin was built on a simple but powerful idea: money should belong to the people, not to governments or corporations.

The code for Bitcoin is open source, meaning anyone can review it, verify its integrity, and see exactly how it works. All Bitcoin transactions are recorded on a public ledger called the blockchain, which is stored and maintained by thousands of individuals running full nodes on their computers across the world, in homes, offices, and data centers.

Unlike fiat digital currencies, Bitcoin is decentralized and is not controlled by any government or company. It operates through proof-of-work, a process that requires computational effort and electricity to secure the network. There will only ever be 21 million Bitcoins in existence, a hard limit that makes it resistant to inflation and political manipulation.

Bitcoin has been embraced globally as a true store of value and a symbol of financial independence. It represents digital cash that is private, borderless, and free from censorship. Governments can attempt to restrict or ban it, but they cannot stop it. The network belongs to the people and exists wherever there is internet access.

In many ways, Bitcoin embodies the modern fight for financial freedom, a system built by the people, for the people, standing in direct opposition to the centralized control of government fiat digital currencies.

Conclusion: Protecting Cash and Freedom for Future Generations

As government fiat digital currencies and cashless systems become more ingrained in daily life, it is crucial to remember that cash remains a fundamental tool of freedom. Cash is a symbol of independence, the ability to make transactions without surveillance, the right to choose how and when to spend one’s hard-earned money, and the protection from unjust financial seizure.

The abolition of cash would be the final step in a dangerous process of consolidating power, allowing governments and corporations to control not only what we do but how we live. The right to use cash should not be taken for granted, and citizens must fight to preserve their right to privacy and autonomy in the face of an increasingly cashless world.

As we move forward into an era of digital payments, we must remember that the cost of convenience should not be the sacrifice of freedom. Cash and decentralized alternatives like Bitcoin, the true digital cash, represent the last lines of defense against total financial control. To lose them is to lose a piece of our freedom and the ability to live without the constant threat of financial oppression.

The Fight for Bitcoin: Keeping Financial Power in the People’s Hands

As Bitcoin continues to gain global recognition, states, governments, and financial institutions are increasingly buying and accumulating BTC as a strategic reserve. They see it as a true store of value, a hedge against inflation, and a tool for future financial power.

This is a critical moment for individuals. The more Bitcoin is controlled by central authorities or institutions, the less it remains a tool of independence for the people. Citizens must actively buy and hold BTC, ensuring it stays in the hands of the public rather than concentrated in the vaults of governments or corporations.

By taking ownership, people preserve their financial sovereignty and protect a system that is decentralized, private, and resistant to censorship.

The battle for Bitcoin is not just about wealth; it is a fight to keep true financial freedom alive.

Sara Hussein, a Kurdish writer living abroad, she focuses on politics, culture, and religion. She is a contributing writer for iKurd.net.

The opinions are those of the writer and do not necessarily represent the views of iKurd.net or its editors.

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