Will Digital Banks lure Cash from under Iraqi Mattresses?

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Will digital banks lure out cash under Iraqi mattresses?

In Iraq, years of economic and political instability have created an environment of mistrust that is leading many to avoid depositing their money in banks. The preference is to store cash at home. This tendency has undermined Iraq’s ability to develop its banking system, which is already hamstrung by insufficient legal and regulatory frameworks and the influence of the country’s oil rentier model.

But even though cash remains king in Iraq, some people are looking beyond the traditional banking system for opportunities in digital banking. They argue that this will expand the Iraqi public’s access to financial services and aid economic development.