The first phase of the introduction of the digital Turkish lira has just been completed by the Central Bank of the Republic of Turkey (CBRT). In order to conduct “more large-scale pilot tests,” the bank is about to move into advanced phases.
According to a recent report, the bank is preparing for every aspect of CBDC circulation. The first phase of the central bank’s digital currency (CBDC) involved preliminary tests of strategic technology.
During this phase, pilot test studies were conducted to test at specific locations and measure user experience and system performance.
The report summarizes findings and evaluations on digital currency transactions, wallet usage and digital identification.
“It is important for the digital Turkish lira to prepare a system that fully meets the requirements and principles of digital currency, rather than the technology itself,” – it reads.
The report highlights the CBRT ‘s digital lira efforts starting in 2021 to study the feasibility and implementation of CBDC. In December 2022, the central bank successfully completed the first payment transaction on the Turkish lira digital network.
In September 2023, a Chainalytic study showed a sharp increase in Turkey’s cryptocurrency adoption rate from 16% to 40%.
The central bank said it will continue research and development in the next stages. In addition, changes in CBDC payment forms, smart payments and offline payments, as well as their economic and legal implications, will be studied in the coming stages.
“In the second phase, the Turkish lira’s digital cooperation platform will be expanded to include new participants and pilot tests of various scenarios will be conducted.”
However, the CBRT has not yet finished work on the design and architecture of the digital lira. The bank is reviewing possible design options and evaluating whether they meet the CBDC’s economic, legal and fiscal requirements.
He also said: “After the evaluations, a decision will be made on its dissemination.”
