The central bank of Turkey has begun to develop a platform for testing and then introducing the digital Turkish Lira into the country’s existing payment infrastructure.
data local media, the Central Bank of Turkey has entered into agreements with technology firms Aselsan and Havelsan, as well as with the Scientific and Technical Research Council of Turkey (TÜBITAK) and the Information Security Research Center (BILGEM). They will work to create a prototype blockchain-based platform that will conduct research on the potential benefits of a central bank digital currency.
The Turkish central bank announced the completion of testing the proof-of-concept of the digital lira and moving to the next stage, which will involve the central bank’s technology partners. If the upcoming testing stage is successful, new participants will be attracted to the platform in the future. In the future, the Central Bank of Turkey plans to conduct tests to determine how effectively the digital lira can be used in payment systems.
However, the regulator explained that the final decision on the launch of the state stablecoin has not yet been made, and the results of the initial stage of the pilot project will be known in 2022. To understand how appropriate it is to launch a digital currency, the regulator will study its technological alternatives. In addition, it is necessary to find out whether existing technologies can ensure that the digital lira meets economic, legal and financial requirements.
Many central banks have long begun to explore the potential of government cryptocurrencies. Thus, the researchers of the Central Bank of Israel see more advantages in the launch of the digital shekel, since it will allow international payments to be made much faster and cheaper. The Reserve Bank of India (RBI) is also developing a strategy for phasing in the digital rupee.
The Russian government is also interested in launching the digital currency of the Central Bank, but is in no hurry to implement it. Recently, the Ministry of Finance of the Russian Federation announced that the digital ruble will be presented until 2030.