• The Central Bank of the Republic of Turkey (CBRT) has indicated that its digital lira will be released by 2023.
• The CBRT has successfully completed its first experimental phase of the digital Turkish lira.
• The CBRT will continue to conduct small-scale, closed-loop application pilot tests in the first quarter of 2023 with technological stakeholders, and will broaden its trials to include banks and financial technology firms in the second half of the year.
The Central Bank of the Republic of Turkey (CBRT) has announced that it will launch its digital lira by 2023, marking a significant milestone in the adoption of Central Bank Digital Currencies (CBDCs). The CBRT recently completed its first experimental phase of the Digital Turkish Lira and is set to conduct small-scale, closed-loop application pilot tests with technology partners in the first quarter of 2023. The trials will then be broadened to include a few banks and financial technology firms in the second half of the year.
The CBRT’s decision to launch the digital lira comes as part of the country’s larger efforts to modernize its banking infrastructure. The Turkish Presidential Strategy and Budget Directorate discussed a CBDC that would be connected with digital identification and FAST, the country’s central bank-operated payment system. This would allow users to make payments more securely and quickly, while also providing greater control over their data.
The CBRT has stated that it will prioritize studies on the Digital Turkish Lira’s technology requirements, as well as its economic and regulatory framework, in 2023. The bank has also committed to making the test results public in a comprehensive evaluation report.
The launch of the digital lira is expected to make a significant impact on the Turkish economy. It could potentially reduce transaction costs, simplify the payment process, and make it easier for the unbanked population to access financial services. It could also open up new opportunities for businesses, such as the ability to easily accept digital payments and access new customer markets.
The CBRT’s decision to launch the digital lira is a clear sign of the country’s commitment to modernizing its banking system and creating a more efficient and secure payment infrastructure. By leveraging the latest technologies available, the CBRT is paving the way for a more dynamic and connected economy.