The impact of digitalization on enhancing perfect competition conditions and its reflection on some financial and monetary variables in Iraq

Abstract

To achieve its objectives and test its hypothesis, the research adopted a descriptive-analytical approach by analyzing the channels through which digitalization impacts the money supply, liquidity control, financial inclusion enhancement, and improving the efficiency of tax and fee collection. The research also examined the state of digital infrastructure in Iraq and the role of the Central Bank of Iraq in expanding the use of electronic payment tools and developing banking systems. The research concluded that digitalization helps bring the market closer to the conditions of perfect competition by enhancing information symmetry, increasing the number of market participants, and improving the flexibility of monetary supply and demand. However, it may simultaneously create new forms of concentration and digital monopoly if not accompanied by effective regulatory and supervisory policies.