By Janet Ekstract
ISTANBUL- In a recent statement, the Central Bank of Turkiye (CBRT) stated that it completed its first pilot phase of the digital Turkish lira with tests scheduled to run throughout 2023. In part, the statement said: “In the first quarter of 2023, the CBRT will continue its small-scale, closed-loop application pilot tests conducted with technological stakeholders. The test results will be made public in a comprehensive evaluation report.”
In 2019, the Turkish government made its first declaration of its intention to test out Central Bank Digital Currency (CBDC) as part of Turkish President Erdogan’s Annual Presidential Program. In another section of the bank’s statement, it further stated: “Studies on the legal dimension of the digital Turkish lira show that digital identification is of vital importance for the project. Therefore, studies on the technological requirements and the economic and legal framework of the digital Turkish lira will be prioritized throughout 2023.”
Central banks throughout the world have been researching and exploring how digital currencies might be used. CBDCs are a digital form of fiat money that gives holders a direct claim on the central bank and lets them make instantaneous electronic payments. They are unlike cryptocurrencies that are private and decentralized. CBDCs are the digital form of fiat money, giving holders a direct claim on the central bank and allowing them to make instant electronic payments. CBDCs differ from digital money like cryptocurrencies, which are private and decentralized. An estimated 80 percent of global central banks are involved in research, experimenting or developing CBDCs, according to the Bank of International Settlements (BIS). At least 40 percent are already testing out pilot programs.
