Cryptocurrency emerged from the ashes of a banking collapse and global recession. The financial crisis and the centralized government had created several difficulties, and the only suggested solution was cryptocurrency. As outlined in the Bitcoin white paper, Satoshi’s crypto concept seemed almost overly impressive to become real. If the peer-to-peer decentralized online wallets hadn’t been designed for a small group of techies who understood the actual use of digital cash and cryptography, they would have been rejected.
In the beginning, cryptocurrency’s growth was slow, and its acceptance among the population was modest. However, as people became more aware of its potential and the blockchain technology, crypto took over as the market leader. Kurdcoin, Iraq’s first and biggest cryptocurrency brokerage, was founded by Abdurrahman Bapir. Crypto is becoming more evident in Iraq. Read on to know how Iraq is connecting to international economies by making cryptocurrency a bridge.
The adoption of crypto technology is providing the solution to the unbanked Iraqis and connecting them with international economies. More than 60% of Iraq’s 40 million residents are under 25 years old, making up a large portion of its population. Mostly, its residents are unbanked, with only one out of ten individuals possessing a bank account. Many Iraqis have shifted to cryptocurrency as a store of value and investment now. Cryptocurrency has proved to be a better option in many ways than keeping cash at home.
The continued negative stance of the government against cryptocurrencies has been one of the primary hurdles to blockchain use in Iraq. The Central Bank of Iraq released a statement restricting the adoption of digital currencies during the 2017 price surge. Similarly, in 2021, the Kurdistan Regional Government’s Ministry of Interior issued a warning notice to all foreign exchange and fund transfer agencies to avoid the buying and selling of cryptocurrencies. The hostile attitude of the government made cryptocurrency technology inaccessible in the region.
Cryptocurrency frauds, Ponzi schemes, and other immoral acts have scammed tens of thousands of individuals. Foreign firms or agents acting as genuine crypto-regulated service providers that need payment in crypto have stolen millions of dollars from people. Such scammy acts have pulled funds from the economy, primarily from already-struggling regions, and have increased the trust issues of people. A legit example of Ponzi schemes is a business website called Praetorian Group International that vanished just a month earlier. This multibillion-dollar Ponzi scam turned cryptocurrency fantasies into nightmares by taking away $40 million of investors’ funds.
Despite the state’s hostile attitude, Ponzi schemes, the black market, and fraudulent activities, Crypto seems to be inevitable in Iraq. More and more Iraqis are either investing or storing money in cryptocurrency. The crypto market is largely untapped, so who can ignore it? Even several challenges and hurdles can’t prevent bitcoin adoption in Iraq. A widespread acceptance of blockchain seems inevitable due to financial incentives and the simplicity of using cryptocurrency as a payment method.