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.

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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.

Copyright © 2025 iKurd.net. All rights reserved

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How the Barzanis Used Pirate Names to Hide $100M

Kurdish Pirates of the Caribbean in America

NEW YORK,— The Barzani family is synonymous with political power in Iraqi Kurdistan. Now, a leaked cache of documents reviewed by the Organized Crime and Corruption Reporting Project (OCCRP) and shared with partners shows how five of Massoud Barzani’s sons, all either senior officials or close to power, quietly expanded their wealth far beyond Erbil.

According to OCCRP, the brothers spent at least $100 million in the United States on luxury homes, commercial properties and high-end goods, using offshore companies and funds that appear tied to Kurdish conglomerates with government contracts.

The records, covering nearly two decades, reveal how the Barzanis built a financial empire in America while leading a region still struggling with corruption, economic crises and public frustration over inequality.

Buying Properties Coast to Coast

The leaked documents detail how the Barzanis acquired 31 properties across the United States between 2005 and 2019, worth more than $100 million. The holdings included a six-bedroom mansion in the Washington, D.C., suburbs, multiple apartments near the capital, and commercial buildings in Florida, Texas and California that hosted chain restaurants and shops.

The acquisitions were managed through U.S. companies registered in Delaware and Virginia, often owned by offshore firms in the British Virgin Islands. Each of these offshore entities carried names drawn from the Pirates of the Caribbean film franchise, with one company titled after “Jack Sparrow” and another after “Edward Teague.”

At least 13 of the American properties have since been sold, while 18 remain under companies still active on public registries.

How the Money Moved

OCCRP found that at least $28 million of the family’s spending came from two conglomerates with operations in Iraqi Kurdistan.

More than $10 million was traced to Golden Eagle Global, a firm involved in construction, advertising and military supply contracts. Leaked documents suggest the company was secretly controlled by Mustafa Barzani (also known as Babo Barzani), the youngest brother.

Another $18 million originated from Ster Group, a conglomerate described in the documents as being under the influence of Masrour Barzani, who is now prime minister of the region.

Beyond those transfers, ledgers showed additional family spending on high-value purchases such as a Ferrari Spider, a piano costing nearly $100,000, Arabian horses, jewelry and handbags. Payments also covered American Express “black card” balances, nanny services, and private school expenses.

Offshore Structures for Secrecy

Lawyers working for the Barzanis designed a layered corporate structure to keep their names off U.S. public records. In 2007, after concerns that property records listed family names, legal advisers created a web of companies in the British Virgin Islands. Those offshore firms then owned Delaware or Virginia companies, which in turn held property deeds.

Internal memos show that this system was intended to maintain confidentiality and avoid scrutiny under “politically exposed person” rules, which require extra checks for relatives of senior officials.

Role of Golden Eagle Global

Golden Eagle Global, known in Kurdistan for construction and advertising contracts, also supplied vehicles, helmets and boots to Kurdish security forces and handled contracts with the U.S. military.

Leaked corporate agreements list associates acting as “nominees” for Mustafa Barzani (Babo Barzani), pledging to follow his instructions as the actual owner. Company bylaws named him chairman, and internal emails from U.S. lawyers referred to Golden Eagle as the “family business.”

A related entity, Golden Eagle Global Inc., registered in Delaware, was originally described as a subsidiary of the Kurdish firm. Leaked documents show that in 2021 its shares were transferred to Mustafa Barzani and an associate for nominal sums. Another company, GEGI Management LLC in Washington, D.C., was created solely to receive Barzani family funds and pay U.S. property expenses.

According to a 2020 internal memo, this account routinely paid costs ranging from luxury shopping to hospital bills. In 2023, for example, it covered a $41,000 fee to a nanny placement agency.

Ster Group Transfers

The second major funding source was Ster Group, a Kurdish conglomerate that expanded rapidly after 2003. Once known for distributing Coca-Cola products and building Erbil’s first skyscraper, Ster also entered telecommunications, oil and other sectors.

According to leaked correspondence, Ster Group or its owners transferred more than $18 million for Barzani family purchases. Wire receipts documented $7.2 million, while letters from the family’s U.S. law firm referenced an additional $11.1 million.

In 2008, Ster was described in emails as “Masrour Barzani’s overseas company.” Draft letters suggested that Ster and U.S. firms buying property on his behalf were “under common control.”

Ster also provided funds for luxury purchases, including a Ferrari for Mustafa and Lalique crystal objects.

Conflicts of Interest

Analysts who reviewed the documents said the findings highlight concerns about conflicts of interest. Iraqi law requires officials to disclose assets and business ties, but enforcement is weak.

“The financial flows appear to blur the line between public duties and private wealth,” said Jodi Vittori, a professor at Georgetown University.

Former U.S. official Stuart Bowen said the spending stood in stark contrast to the lives of ordinary Kurds, whose average monthly income is little more than $500.

Family Ties and Political Power

The Barzani family has dominated politics in Iraqi Kurdistan for decades. Patriarch Massoud Barzani led the region as president until 2017 and continues to head the Kurdistan Democratic Party. His sons hold or have held senior posts:

• Masrour, 56, became Kurdistan prime minister in 2019 and was formerly head of intelligence.

• Waysi, 50, has advised the region’s Security Council.

• Mansour, 52, commanded special forces.

• Mustafa, 44, has been active in regional administration.

• Muksi, 53, lives mainly in the United States and made the largest property acquisitions, worth nearly $60 million.

The leaked records show that all five brothers held U.S. residency rights through citizenship, green cards or visas.

Properties in Washington and Beyond

The Barzanis concentrated many acquisitions in and around Washington, D.C., particularly in McLean, Virginia, near CIA headquarters. Several homes were gated and guarded.

One of the most prominent was Casa Divina, a mansion on five acres in Great Falls, Virginia. Purchased in 2013 for $5.6 million by a company tied to Mustafa Barzani, the home featured a cinema, classical columns and luxury furnishings. He sold it in 2022 for $6.25 million.

Other investments included commercial buildings in Miami Beach, Detroit, and multiple fast-food franchises.

Lawyers’ Responses

Lawyers for Prime Minister Masrour Barzani said he “vehemently rejects” any wrongdoing and pointed to anti-corruption initiatives he launched. They said there is nothing unlawful about owning property abroad and that wealthy individuals often rely on corporate structures for privacy and security.

Attorneys for Ster Group’s former owners said the transfers represented legitimate currency exchanges and were legal. They denied acting as fronts for the Barzanis.

Repeated requests for comment to the other Barzani brothers, as well as to Golden Eagle, Ster Group, and related advisers, went unanswered.

Political Context

The Barzanis’ dominance in Iraqi Kurdistan dates back to Massoud Barzani’s father, a tribal leader who fought Baghdad for decades. After the 1991 Gulf War, Kurdish authorities gained autonomy under international protection. Following the 2003 U.S. invasion, the region deepened its ties with Washington, receiving military and financial support.

Today, the family maintains close relations with American policymakers. Masrour Barzani visited Washington in 2025 to announce new energy deals. Members of Congress, including Michigan Senator Elissa Slotkin, emphasized the Kurdish role in fighting the Islamic State.

A Network Still Intact

While some of the Barzanis’ U.S. properties have been sold, leaked documents show that at least 18 remain under companies created through their offshore network.

In total, OCCRP calculates that the family spent at least $100 million in the United States on real estate and luxury items between 2005 and 2019. The disclosures raise unresolved questions about conflicts of interest, transparency, and the intersection of politics and private wealth in Iraqi Kurdistan.

Kurdish Region’s Reputation for Corruption

Iraqi Kurdistan is widely regarded as one of the most corrupt regions in Iraq. According to watchdog organizations, Kurdish lawmakers, and leaked financial records, billions of dollars from oil revenues are unaccounted for.

Local and international analysts say the absence of effective oversight and control mechanisms has turned the region into an environment that facilitates illegal financial activities by ruling elites. Observers note that wealth accumulation often appears to benefit a small circle of leaders rather than the broader population.

The Barzani family, which has dominated regional politics for decades, is frequently described by critics as a “Kurdish oligarchy.” Reports and watchdog analyses suggest that members of the clan have used their positions to amass substantial fortunes, particularly from the oil sector, while ordinary citizens see little benefit.

Massoud Barzani remains, according to analysts, the most influential figure behind the scenes, guiding the family’s political and economic decisions. His son, Masrour Barzani, serves as the region’s prime minister, while his nephew, Nechirvan Barzani, holds the presidency. Together, the family continues to exercise substantial control over the Kurdistan Regional Government and its economic resources.

The $100 million revealed by OCCRP represents only a fraction of the estimated wealth the Barzani family has accumulated over the years, much of it derived from oil revenues and public funds, critics say, highlighting the extent of systemic corruption in the region.

To read the full report reported by Zack Kopplin, Government Accountability Project, and Kevin G. Hall from OCCRP, please visit the OCCRP.

The Organized Crime and Corruption Reporting Project (OCCRP) is a United States non-governmental organization that fosters investigative journalism.[1] It was founded in 2006 and specializes in organized crime and corruption.

Copyright © 2025 iKurd.net. All rights reserved

Yasser Barzani appears in Monaco with high-end Lamborghini amid Kurdistan’s salary crisis

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The Kurdish economy in the intensive care unit amid salary delays, Economist says

ERBIL,—The Kurdistan Region’s economy is experiencing a severe economic slowdown as a dispute over public-sector wages between Baghdad and Erbil continues, leaving salaries delayed for months and markets stalled.

Economists and local analysts warn that the crisis has cut across nearly every sector, drying up liquidity and weakening household spending power.

Experts say that while resuming payments is critical, it will take more than wage transfers to restore confidence and revive the local economy.

Salaries at the Center of the Standoff

Public-sector salaries, which support a large share of households in the Kurdistan Region, have become the focus of disagreement between the federal government and the regional administration. The delays have not only left employees struggling with debts and reduced income but have also disrupted the financial circulation that sustains trade.

Economic expert Othman Karim told Baghdad Today that the Kurdistan region’s markets are “clinically dead.” He said they will need at least six months of consistent salary disbursements to regain activity across all sectors.

Multiple Sectors Affected

According to Karim, entire areas of the economy have been frozen, including real estate, gold trading, cars, electronics, livestock, and luxury goods. These markets depend directly on household incomes, and without steady wages they cannot function.

“Once employees begin receiving salaries again, most will first repay debts, then focus on necessities,” he said. “Only later will they return to purchasing non-essential or high-value goods.”

This step-by-step pattern, analysts note, shows how the crisis has forced families to reorganize spending priorities, which has both economic and social consequences.

Liquidity Shortage

The lack of salaries has led to a sharp liquidity shortage. Businesses in retail and services have reported steep declines, landlords are facing falling demand, and luxury items have seen sales collapse. Complaints about overdue bank loans and personal debts are spreading, especially among middle-income households.

Independent estimates suggest the Kurdistan Region is losing between one and two percent of its monthly gross domestic product as a result of frozen wages. Small and medium-sized businesses have responded by reducing staff, adding to underemployment and increasing reliance on public support systems.

Path to Recovery

Karim argued that sustained salary payments are essential to recovery, but not enough on their own. He called for a broader plan that includes financial incentives such as easy-access loans and measures to strengthen private-sector activity. Such steps could create jobs and help restart commercial flows.

“The government and parliament must prioritize salary funding and establish mechanisms for handling non-oil revenues to avoid similar crises,” he said. Disputes over oil and budget transfers between Baghdad and Erbil have often disrupted wage disbursements in the past, especially during periods of political or financial strain.

Beyond an Administrative Step

Analysts underline that restoring salaries is not just an administrative act of transferring money. It represents a restart of the wider economic cycle that sustains businesses, households, and government revenues.

Sectors dependent on regular liquidity, such as property, vehicles, and gold, are expected to take months to recover even after payments resume. Observers say that maintaining trust is just as important as resuming salaries, since confidence drives both spending and saving behavior.

“The Kurdistan economy will not recover overnight,” Karim noted. “What is required is a steady commitment to disbursements, alongside policies that give the private sector space to grow and citizens the ability to plan their finances.”

Without such measures, experts warn, the region risks recurring cycles of stagnation that could undermine both economic performance and public trust.

Corruption

The Kurdistan Region of Iraq is described by watchdogs and critics as one of the most corrupt parts of the country, with billions of dollars in oil revenues reported missing.

According to Kurdish lawmakers, oversight groups, and leaked documents, large sums of money from the region’s oil sales cannot be traced. Critics also say millions of barrels of crude have been smuggled by authorities in Kurdistan.

The ruling Barzani family, which dominates political life in the region, has long faced accusations of nepotism. Observers and opponents allege that the family has amassed vast personal wealth from the oil trade instead of directing revenues toward public services and citizens’ needs.

(With files from Baghdad Today News | Agencies)

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Erbil currency market sees differences between “white” and “blue” $100 bills. Erbil traders favor new blue $100 bills over old white ones

ERBIL, Iraqi Kurdistan region,— The currency exchange market in Erbil has recently seen unusual fluctuations in the value of U.S. $100 bills, depending on whether the note is the older “white” version or the newer “blue” version.

Traders and citizens report that while both are official U.S. currency, the newer blue notes are preferred in transactions, and the older white bills often fetch a lower value, according to K24 TV report.

At local money exchange shops, reporters observed traders distinguishing clearly between the two types.

One trader explained, “The blue $100 bill is accepted everywhere, but the white $100 bill is often treated with caution. In bundles of 100 notes, you might lose the value of one note, sometimes more, if it’s the older version. This difference might seem small per transaction, but it adds up significantly in larger trades.”

The difference between the old white $100 bills and the new blue $100 bills is significant for larger transactions. According to traders, a bundle of 100 bills, equivalent to $10,000, can have a price difference of around 100,000 Iraqi dinars, which is roughly $77 USD. This discrepancy shows how the market favors the newer blue notes even for substantial sums.

The preference for blue notes is said to have originated in Turkey and China, where traders reportedly reject older notes or accept them only at a discounted rate.

“Even in Baghdad now, some businesses do not accept the white bills,” a local market participant said. “The problem is not that the bills are counterfeit; all of them are genuine U.S. currency. It’s simply a matter of market perception.”

International transactions further amplify the issue. Traders conducting business with Turkey or China claim that their partners almost always insist on receiving the new blue bills. White bills are either refused or traded at lower rates.

“In our exchanges with China and Turkey, the old white $100 is practically useless. They want the blue notes, otherwise we lose money,” said a local money exchanger.

The impact extends to ordinary citizens. In some cases, individuals repaying loans or transferring large sums find that their white notes are accepted at a discount.

“Sometimes, to complete a transaction smoothly, people have to split their money, half blue and half white,” explained another trader. Even smaller denominations of U.S. dollars, like $50 notes, can have slight differences in value depending on whether they are old or new.

Local traders emphasize that the problem is largely specific to Kurdistan, particularly Erbil. In Baghdad, both versions of the $100 bill are generally accepted at the same rate.

“Here in Erbil, banks and private money exchangers often offer less for white bills. It’s a market-driven issue rather than a legal one,” a trader noted.

Officials at the Central Bank of Iraq maintain that all U.S. currency is valid and there is no legal restriction against using the older notes. Nevertheless, enforcement at local branches and private exchanges remains inconsistent.

“Legally, a hundred dollars is a hundred dollars, whether blue or white,” said a market expert. “But the reality on the ground is different. Traders are reacting to the preferences of their foreign partners and local customers.”

Residents also explained that even minor transactions are affected by the discrepancy. One citizen noted that loans or personal exchanges sometimes require careful splitting of bills.

“If someone comes to pay me with a hundred-dollar bill, I check whether it’s blue or white. Sometimes we negotiate, and if it’s old, I accept less or adjust with other bills. It’s complicated but necessary,” he said.

The issue has persisted for several months. Reports indicate that the discrepancy first became significant about six to seven months ago in Turkey and gradually affected neighboring regions, including Kurdistan.

Citizens say that even in day-to-day shopping or trading in smaller amounts, the older white bills are less desirable.

Despite these challenges, the currency market in Erbil remains relatively stable. Large amounts of U.S. dollars continue to circulate freely, and daily trading in the market involves significant sums, reportedly exceeding a billion dollars in cash transactions over time.

Traders continue to operate cautiously, selecting which notes to accept to avoid losses, while ordinary citizens adjust their transactions accordingly.

One market participant summed it up: “All the money is real, but the market prefers the new notes. In Erbil, if you have white bills, you have to be careful. Sometimes it’s half and half, sometimes you take less. The system is unofficial, but it works as long as people understand it.”

The situation highlights the influence of international trading practices on local markets and the practical challenges of handling currency in regions where informal preferences override official valuation.

For now, residents and traders in Erbil are navigating this unofficial system, balancing the use of old and new $100 bills to keep business flowing smoothly.

(With files from K24 video report)

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SULAIMANI, Iraqi Kurdistan,— Despite bans from federal and regional governments, digital currency trading continues to thrive in Iraqi Kurdistan, with daily transactions surpassing $1 million, according to local traders and experts, Awene Newspaper reported.

Bitcoin BTC, the world’s leading cryptocurrency, has recently surged past $107,000 in global markets. In Iraq’s Kurdistan Region, traders say its popularity—and that of other digital coins—continues to grow despite regulatory opposition.

“Banning digital currencies in Iraq and Kurdistan is impossible,” a trader told Awene. “These currencies are digital, borderless, and used by more people every day.”

Shadman, a 34-year-old resident of Sulaimani, invested $60,000 in a Trump coin, an altcoin, when the price was $60. “It has since dropped to $9,” he told Awene. “I lost around $50,000.”

He added, “I know people who sold their homes and vehicles years ago to buy Bitcoin BTC. Now they rent, but many of them have earned significant returns. These markets are volatile—it’s like gambling. If you’re not careful, you’ll lose everything.”

Sarwar Ahmed, a long-time digital currency trader, said more than 10,000 cryptocurrencies are actively traded worldwide on platforms like coinmarketcap.com. “But here in Kurdistan, people focus on about 30 main ones,” he told Awene. “Bitcoin is the leader.”

He mentioned other popular assets including XRP, Ethereum, Cardano, Pi, Dogecoin, Litecoin, and Stellar. “These are the strongest currencies traded locally,” he said.

Ahmed emphasized that most trades start with a stablecoin like USDt (Tether), which is pegged to the U.S. dollar and not subject to market volatility. “People use it to move into other currencies. Every day, more than $1 million worth of trades happen here,” he said.

“Bitcoin is seen as the most trustworthy. It’s called the mother of digital currencies,” he added. “Its value moves in step with the dollar and gold. It’s expected to keep rising.”

Ahmed explained that users don’t need to buy an entire Bitcoin BTC. “You can buy just 1% of one, which is about $1,000,” he said. “This makes it accessible.”

He criticized attempts by governments in Baghdad and Erbil to block crypto trading. “There’s no physical office to shut down, and no paper money to seize,” he said. “The government should regulate it to protect consumers, not ban it.”

Economist Karwan Baker said there are two main schools of thought about digital currency. “Some experts believe digital currencies will eventually replace cash. Usage is increasing, especially with major global companies accepting them,” he said.

“Others warn that these assets aren’t backed by central banks and can lose value suddenly. There’s also concern they may be used for illegal activity.”

In Kurdistan, Baker noted, digital assets are traded through private companies and online platforms. “Some firms have disappeared with people’s money. It’s the government’s duty to raise awareness and protect citizens through proper education.”

Henase Karim, an analyst speaking to iKurd News, said Bitcoin stands apart from other cryptocurrencies. “People need to distinguish Bitcoin from altcoins, many of which are scams created by companies out of thin air,” she said.

According to Karim, Bitcoin is the only truly decentralized digital asset. “It’s not controlled by any government or company. There’s no headquarters. It can’t be shut off. Bitcoin belongs to the people,” she said.

She explained that Bitcoin was created in 2008 by an individual or group known as Satoshi Nakamoto. “It was a response to governments trying to eliminate cash and implement central bank-controlled digital currencies,” she said.

“Once everything is digital and centralized, any government can freeze your account instantly. That happened during the COVID-19 crisis—like in Canada with trucker protests, or in Greece where citizens were allowed to withdraw only limited amounts from banks.”

Karim argued that central banks printing more fiat money leads to inflation. “People are buying real estate not because they need it, but to preserve the value of their money,” she said. “This drives housing prices up.”

“But once people understand Bitcoin as a true store of value, demand for real estate will drop, and housing will become more affordable,” she said.

She emphasized that Bitcoin’s supply is capped at 21 million coins. “No one can create more. It’s limited and protected,” she said.

Karim warned against investing in other digital coins. “Altcoins are created by private companies. They have no real value and are often scams,” she said.

At the conclusion of her remarks, Karim pointed to a growing global trend. “In March 2027, U.S. President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve. Several other nations are now accumulating Bitcoin as part of their financial reserves,” she said. “Meanwhile, our Kurdish politicians and Iraqi economists are trying to ban Bitcoin. It’s a strange way of thinking.”

(With files from Awene | Agencies)

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ERBIL,— The autonomous Kurdistan Region of Iraq earned $12.9 billion in total revenue for 2024, with 87% of the amount generated from oil sales, according to a CNN Business report published Tuesday.

Caretaker Prime Minister Masrour Barzani, in an interview with CNN, emphasized efforts to reduce the region’s economic reliance on oil and pursue diversification. However, he did not mention where most of the revenue disappears.

“We’re working to shift our focus toward agriculture, industry, and tourism to create a broader economic base,” Barzani told the network.

However, the report did not clarify how the funds are being used. Delays in public sector salaries have raised concerns, especially amid ongoing disputes over oil revenue between Erbil and Baghdad.

The Kurdish region, long dominated by the Barzani clan and their Kurdistan Democratic Party (KDP), continues to face corruption allegations. International watchdogs, Kurdish lawmakers, and leaked financial records suggest billions in oil revenues remain unaccounted for.

Despite this, Barzani said combating corruption remains a priority. “We are committed to addressing corruption across all sectors,” he said.

Kurdistan officials maintain that conditions in the region are more stable than in the rest of Iraq. “We have better security and infrastructure,” Barzani said, noting the region’s early start in developing its institutions.

The region has also been widely criticized for nepotism, with key political positions held by members of the Barzani family, raising concerns about lack of transparency and accountability.

Massoud Barzani, tribal leader and longtime head of the KDP, is also the father of the prime minister and remains a central political figure. His nephew, Nechirvan Barzani, currently serves as president of the Kurdistan Region.

Figures released in February 2025 by Roonbeen-Transparency, a research organization based in Sulaimani, showed Kurdistan netted $2.72 billion in profit from oil in 2024. Average daily oil output stood at 311,491 barrels, totaling 114 million barrels over the year.

Barzani acknowledged limited foreign investment in the region, adding that changes to the investment law are underway. “We need to attract international capital, and that requires improving the legal framework,” he said.

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Erbil using starvation tactics against Kurds, Baghdad must intervene, Noor Fareeq says

SULAIMANI,— A leading figure in the Kurdish opposition has accused the Kurdistan Regional Government (KRG) of deliberately worsening the economic situation in the region, calling on Iraq’s federal government in Baghdad to intervene and hold Erbil accountable.

Noor Fareeq, a member of the National Stance Movement (Rewtî Helwêstî Nîştimanî), appeared on Alsumaria TV’s “Ashreen” program where she criticized the ruling Kurdistan Democratic Party (KDP), led by the Barzani family, for maintaining a grip on power and excluding other Kurdish political groups.

“Barzani’s party monopolizes decisions and only involves others in moments of crisis,” Fareeq said, noting that a recent KDP-called meeting lacked attendance from rival Kurdish parties.

Fareeq directed sharp criticism at the KRG’s recent banking initiative, the “Hisabi” program—also known as “Hejmarî min” or “My Account.” She described it as a “Barzani tribal project” designed to control salaries and strengthen political influence over public employees.

“The program is being used as a tool to threaten staff. Employees are told their salaries will be cut if they don’t sign up,” she said.

Although the KRG says the initiative is aimed at modernizing payment systems for over a million employees, delays and interruptions in salary disbursement remain widespread.

Fareeq said that while the KRG promotes economic independence, its financial mismanagement has caused severe hardship.

She urged Baghdad to take stronger action, including suspending salaries of the President of the Republic and senior regional leaders until Erbil complies with national agreements.

“Erbil is directly responsible for the suffering of Kurdish citizens. These policies are hurting people’s ability to survive,” she stated.

In a letter dated May 28, 2028, Iraqi Finance Minister Taif Sami informed the KRG that continued federal payments were not possible due to budget overruns. The Kurdish region had already received 13.547 trillion dinars—exceeding its legally allotted 12.67% share under the Federal Budget Law.

The letter noted that from 2023 through April 2025, the Kurdistan Region collected 19.9 trillion dinars in total oil and non-oil revenues but transferred only 598.5 billion dinars to the federal government.

In February 2025, Iraq’s Parliamentary Integrity Committee reported that 20 unauthorized border crossings in the Kurdistan Region were being used to smuggle oil, cigarettes, and narcotics.

In response, the Kurdistan Region’s Ministry of Finance said on May 29, 2025, that Erbil’s share should be calculated based on revenues gathered by the federal government, not overall expenditures. The ministry cited a ruling from the Federal Supreme Court requiring Baghdad to pay salaries from the region’s share of the annual budget.

Still, the Federal Ministry of Finance argued that the KRG has not complied with agreed revenue transfers, despite Baghdad honoring its obligations under the tripartite federal budget.

Separately, the New Generation Movement (Newey Nwê) said restoring political integrity in the Kurdistan Region requires reviving the regional parliament and empowering official institutions, instead of continuing to make major political decisions through party divans.

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Qaradaghi says Bitcoin is “haram”

SULAIMANI,— Kurdish Muslim scholar and the head of the International Union of Muslim Scholars, Dr. Ali Qaradaghi, has declared the use of digital currencies such as Bitcoin BTC to be both religiously impermissible and economically dangerous.

Speaking in a recent interview on K24 TV, Qaradaghi, who seems to have absolutely no idea about the economy, digital currencies, and the new Bitcoin standard, said he classified currencies into three categories: paper money, electronic payments, and digital assets.

He affirmed that paper currencies like the Iraqi dinar and U.S. dollar are fully acceptable under Islamic law.

Similarly, he stated that electronic formats, including debit and credit cards such as Visa, are considered legitimate and operate within standard financial norms.

However, Qaradaghi took a firm stance against cryptocurrencies, describing them as unstable, speculative, and lacking intrinsic value.

He emphasized that these assets, like Bitcoin or altcoin, are not backed by physical commodities or recognized by Islamic jurisprudence, and are often traded purely for profit without tangible benefit to society.

“These currencies serve no real economic purpose,” he said. “They are not owned in the traditional sense, and their value can vanish without warning. This makes them both forbidden and extremely risky.”

Qaradaghi pointed to cases in Turkey and other nations where online platforms raised large amounts—reportedly totaling $82 billion—before disappearing without explanation. He suggested that such incidents highlight the dangers of dealing in unregulated digital assets.

According to Qaradaghi, while a small number of blockchain-based services may be considered halal under specific conditions, the overwhelming majority of digital coins fall into the category of haram due to their speculative nature.

“Most of these platforms enrich the already wealthy. They do not contribute to the welfare of the poor. Not even a loaf of bread has been distributed from these gains,” he stated.

Meanwhile, top world analysts argue that Bitcoin stands apart from other digital currencies. Unlike altcoins, Bitcoin is decentralized, operates independently from governments or corporations, and has a capped supply of 21 million units. Its supporters often refer to it as “digital gold” and claim it represents a secure, unconfiscatable true store of value.

In March 2025, U.S. President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, utilizing digital holdings already in government control.

Henase Karim, a political and economic analyst, told iKurd.net that Bitcoin was developed as a response to global monetary inflation and the centralization of financial power.

“People no longer trust traditional banks or governments,” Karim said. “Bitcoin is controlled by no one. It’s designed by and for ordinary people.”

She added that as fiat currencies lose value due to excessive printing, more countries are beginning to recognize Bitcoin’s long-term potential.

“Governments worldwide are now legalizing Bitcoin. But in parts of the Middle East, the more you enforce religious interpretations, the more you fall behind scientifically and economically,” she concluded.

Bitcoin reached a record $109,071 in January 2025.

In January 2024, Ali Qaradaghi was elected chairman of the International Union of Muslim Scholars (IUMS), succeeding the late Yusuf al-Qaradawi, a controversial figure known for his hardline views.

Discover The Bitcoin Standard: The Decentralized Alternative to Central Banking, a hardcover edition featuring illustrations, authored by Saifedean Ammous and published on April 24, 2018.

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