An official statement announced the first trial test of the country’s digital currency.
Joining the list of countries focusing on CBDCs, Turkey made a major announcement claiming that the first trial of its central bank digital currency (CBDC) was completed and that the testing would continue in 2023. As mentioned in an official statement, the Turkish Digital Lira was the latest CBDC to be used for a payment transaction. In the first quarter of 2023, tests using closed-loop application small-scale pilot would continue on the CBDC with technology partners before being expanded to banks and financial institutions.
The official statement stated, “Studies on the legal aspects of the Digital Turkish Lira demonstrate that digital identification is of critical importance for the project. Therefore, studies on the economic and legal framework of the Digital Turkish Lira as well as its technological requirements will be prioritized throughout 2023.” The results of the tests will be made public in a comprehensive report.
The research project started in September 2021 and was named “Central Bank Digital Turkish Lira Research and Development.” The government gave no guarantee at that point regarding the CBDC, but the recent development is a testament to the government’s renewed initiative to integrate digital ledger technologies with the country’s payment systems. Legal aspects of the CBDC will also be explored.