Implications of Adopting Central Bank Digital Currency (CBDC) on Monetary Policy and Payment Efficiency: An Analytical Study at the Central Bank of Iraq (2022–2024)

• مدرس مساعد ايمان العيثاوي

  الجامعة التقنية الوسطى /معهد اعداد المدربين التقنيين

  Author

This study aims to analyze the potential reflections of adopting Central Bank Digital Currency (CBDC) on monetary policy and payment efficiency in Iraq during the period (2022–2024), employing a descriptive analytical approach. The study concluded that: there is a significant positive relationship between CBDCs and payment efficiency, with monetary policy acting as a partial mediator in this relationship (62%). Furthermore, results indicate that the Iraqi banking environment possesses preliminary foundations for digital transformation, despite challenges regarding legislative infrastructure. Based on these findings, the study recommends the Central Bank of Iraq should conduct a strategic feasibility study for CBDC issuance, develop a robust legislative and regulatory framework to ensure financial stability, expand digital financial inclusion programs, and modernize banking infrastructure with real-time data analytics to enhance monetary policy effectiveness.

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