The Detrimental Impact of Cash-Only Economy: Iraq's Lag in Embracing Electronic Payment Methods

Abstract

This report examines Iraq's economy and credit card ban on Retail's effects. This article addresses Iraq's late adoption of digital payment systems and the benefits of modernizing its payment infrastructure. Problem Statement Iraq's economy and banking system suffer without electronic payment options. This study examines Iraq's cash economy's effects on financial openness, tax revenue, consumer convenience, and GDP. This article examines Iraq's slow electronic payment progress. Comparing Iraq's digital payment system to others shows the need for improvement. This study used qualitative and quantitative methods. This study was underpinned an extensive literature review, in-depth interviews with key actors, and statistical data analysis from banks, governments, and international organizations. Three research approaches were used. Three figures demonstrate Iraq's cash-only economy's flaws. One study claims cash transactions hurt Iraq's economy. A regulatory vacuum causes money laundering, corruption, and government failure to collect taxes and other revenue. E-commerce and forward-thinking management have lagged without alternative electronic payment choices. This study examines Iraqi payment alternatives. Financial literacy efforts, public-private collaborations, and financial institution-technology supplier alliances can accelerate the cashless society transition. The data suggests Iraq should quickly switch to electronic payments. Economic development, financial inclusion, and openness will rise if the government succeeds.