Digital Financial Transformations in Arab Countries and the Role of Digital Currencies in International Economic Relations after 2020 (Iraq as a Case Study)

Abstract

The digital financial transformations that have taken place in Arab countries after 2020, in light of the rapid advancement of financial technology and the widespread adoption of digital services, with a particular focus on the role of central bank digital currencies (CBDCs) in developing financial systems and strengthening international economic relations. The study aims to analyze the conceptual framework of digital financial transformation, assess the reality of its applications in Arab countries, and highlight the experience of Iraq as a model of a developing country seeking to modernize its financial infrastructure and integrate into the global financial system.

The research adopts a descriptive-analytical methodology by reviewing economic literature and official reports, as well as analyzing practical experiences of selected Arab countries, particularly digital payment projects and central bank digital currency initiatives. The findings indicate that digital financial transformation represents an effective tool for improving the efficiency of payment systems, expanding financial inclusion, and reducing transaction costs, in addition to its role in enhancing monetary stability and supporting regional and international financial integration. The results also show that the success of these transformations in Arab countries, especially in Iraq, is closely linked to the availability of advanced digital infrastructure, flexible regulatory frameworks, and effective policies for managing technical and cybersecurity risks.