Libyan businessman Husni Bey told our source that after the Central Bank connected all commercial banks and their branches across eastern, western, and southern Libya, in addition to linking all electronic payment service providers to the national switch and launching the “Financial Inclusion” initiative, the HB Group decided to roll out a limited pilot project in Al-Karimiya market in Tripoli, with plans to expand it nationwide if successful.
He explained that the initiative, named “Zero Cash,” is based on refusing paper money in wholesale distribution shops in Al-Karimiya as a first step, before gradually extending it across Libya. The project is part of a phased plan lasting six months and ending on 31 March 2026, aiming to complete the transition to digital payments and fully eliminate cash transactions.
Bey noted that the announcement of the initiative in October surprised many, with some doubting its feasibility, while others quickly embraced and supported the idea by adopting similar practices.
He added that the launch coincided with a severe shortage of banknotes following the Central Bank’s decision to withdraw the 20 and 50 Libyan dinar denominations, as part of efforts to regulate money supply and define the real monetary base. This process revealed more than 10 billion Libyan dinars of unknown origin in these two denominations, accounting for around 22% of the total withdrawn in 2025.
According to Bey, these developments led to a sharp liquidity crisis and accelerated the shift toward electronic payments. Cash usage declined from over 60% in 2023 to less than 40% by September 2025. With the launch of the Zero Cash initiative in mid-October 2025, acceptance of electronic payments exceeded 90% in its initial phase, cash reliance fell below 10%, and by the current week, transactions reached 100% electronic payment, achieving the target in just nine weeks instead of the planned six months.
He concluded by stressing that despite this success, financial inclusion remains below the desired level, calling for faster expansion through greater use of prepaid cards and the introduction of pooled accounts that allow sponsors to guarantee users. This, he said, would strengthen financial inclusion and ensure the sustainability of digital transformation, particularly for non-resident expatriates, the elderly, and minors.
