Central Bank of Iraq and Its Role in Crypto Regulation and Economic Shifts

When you hear Central Bank of Iraq, the government institution responsible for managing the Iraqi dinar, monetary policy, and financial stability in Iraq. Also known as CBI, it controls the country’s money supply, sets interest rates, and oversees banks — but in recent years, its stance on digital assets has become one of the most watched in the Middle East. Unlike countries that banned crypto outright, Iraq hasn’t made it illegal — but it hasn’t embraced it either. Instead, the Central Bank of Iraq has stayed silent, while millions of Iraqis quietly turn to Bitcoin and stablecoins to protect their savings from hyperinflation and banking restrictions. This isn’t just a grassroots trend — it’s a survival strategy. With the Iraqi dinar losing value and access to foreign currency limited, people are using USDT and USDC to pay for groceries, send remittances, and even buy property online.

The Central Bank of Iraq is under pressure. On one side, citizens are bypassing the formal banking system. On the other, global institutions are pushing for digital currencies. The central bank digital currency — a government-backed digital version of the dinar — has been discussed for years, but progress is slow. Meanwhile, crypto regulation Iraq remains a gray zone. No official rules exist, no licensing system for exchanges, and no clear tax guidance. That vacuum is filled by peer-to-peer trading, Telegram groups, and local crypto shops in Baghdad and Erbil. The Iraqi dinar is still the official currency, but in practice, many transactions now happen in stablecoins. This shift isn’t happening because people love crypto — it’s happening because they have no other choice.

What you’ll find below is a collection of real stories, warnings, and deep dives into how people in Iraq and similar economies are using crypto to outmaneuver broken systems. From scams targeting the unbanked to stablecoins offering real stability, these posts don’t just talk about technology — they show how it’s changing lives. Whether you’re in Baghdad, Basra, or somewhere else where trust in banks is low, the choices people are making here matter. The Central Bank of Iraq may not be ready for crypto, but the people already are.