The Turkish Central Bank has more in store for CBDC 2023

  • the The Central Bank of the Republic of Turkey has indicated that it will launch a digital lira in 2023.
  • The CBDC will be linked to multiple operations at the state and central levels.

The first pilot phase of the Central Bank of the Republic of Turkey (CBRT), which revolves around central bank digital currencies. [CBDCs], completed. Entitled “Digital Turkish Lira,” CBRT indicated that it will carry out further experiments in 2023.

In a statement issued on Dec. 29CBRT claimed to have successfully completed “first payment transactions” using the virtual lira. In the first quarter of 2023, it will conduct limited closed-loop beta tests with technology partners. It will then be expanded to a few banks and fintech companies in the second half of the year.

So what’s in store in 2023?

The Turkish digital lira will develop into more advanced stages by 2023, according to the CBRT. At this stage, the Central Bank will conduct pilot tests with the wide participation of banks and financial technology companies.

The bank said:

During the first quarter of 2023, CBRT will continue its small-scale beta testing with closed applications being conducted with technical stakeholders. The test results will be published in a comprehensive evaluation report.”

The Turkish Bank further stated that in 2023, studies of the technological requirements for the digital Turkish lira, in addition to its financial and regulatory framework, will be given priority.

In its annual program for 2023, the Turkish President’s Directorate of Strategy and Budget discussed the CBD that would be linked to the digital identity and the FAST payment system, the payment system controlled by the country’s central bank. The bank also added:

Studies on the legal dimension of the digital Turkish lira show that the digital identification is of crucial importance for the project. Therefore, priority will be given to studies related to the technical requirements, economic and legal framework of the digital Turkish lira in 2023.”

Turkey and CBDCs

In a study project titled “Research and Development of the Central Bank’s Digital Turkish Lira,” the Central Bank of Turkey revealed only in September 2021 that it was looking into the benefits of adopting the digital Turkish Lira.

However, the government stated that it subsequently:

“No final decision has been taken regarding the issuance of the digital Turkish lira.”

According to the CBRT’s recent announcement, it will continue to test the “integration” of distributed ledger technologies with instant payment systems within payment systems.

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