Turkey’s central bank digital currency project, the digital lira, has advanced since its earlier stages, and the central bank of Turkey recently launched a report on it.
Turkey released an English version of a report it published earlier regarding the digital lira. The country’s digital currency project has seen several findings, which the central bank included in the report. The Central Bank of the Republic of Turkey (CBRT) is heading the project and has concluded the first phase of its research.
The first phase of the digital currency project experimented and researched several important aspects. It included an abstraction layer, wallet, service layer, digital identity system, and digital currency system. Moreover, using the findings, the central bank carried out the digital lira’s first transactions in 2022. The digital lira would also operate on its own platform, and all its systems would be separate and replaceable.
The digital currency project is creating an intermediate retail CBDC, while research on wholesale payments will continue separately.
Moreover, the report mentioned that the central bank’s digital currency is designed so that “it protects privacy, does not harm existing economic and financial processes, is able to adapt technological innovations, and is interoperable with components in digital ecosystems.” The report clarified that one could access the system without depending on any financial intermediary institution.
Meanwhile, the report described the project’s next phase will focus on offline payments and smart payments. It will consider the legal and economic aspects of the system. The digital currency in Turkey could be a key driver of CBDC adoption, enabling seamless payments.
On the other hand, Turkey is also developing a crypto regulatory framework. A senior minister claimed the framework is in its final stages a month back.
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