“Iraq’s population of 40 million people is largely cash-driven, with 99.8 percent of its $122 billion personal consumption expenditure made in cash in 2019.” Mastercard
The process of digitization is progressing in Iraq. It is a country dominated by cash usage (99 percent in 2019). There is 70 percent smartphone penetration.
Mastercard reports a contract with the CBI (Central Bank of Iraq) to provide digital services in Iraq. One of the motives is to improve financial inclusion.
CBDCs are not really expected at this time due to the high cash adoption, and limited digital payment infrastructure. But this could change as much of the Middle East prioritises financial inclusion.
The IQD is pegged to the USD.