The First CBDC test by Turkey’s central bank is complete
After successfully completing its first payment transactions using a digital currency issued by a central bank, the Turkish central bank will conduct more experiments until 2023.
The Central Bank of the Republic of Turkey (CBRT) has completed the first test of its central bank digital currency (CBDC), the Digital Turkish Lira, and has indicated that testing would continue until 2023.
According to a statement issued on December 29 by the CBRT, the central bank authority successfully completed its “first payment transactions” utilising digital lira.
In the first quarter of 2023, it will continue to conduct restricted, closed-circuit pilot testing with technology partners before extending the program to include select banks and financial technology businesses for the remainder of the year.
It was said that the findings of these tests would be shared with the public through a “full assessment report” before the following stages of the research, which will include a greater number of participants, are revealed.
In September 2021, the Turkish central bank stated that it will investigate the advantages of creating a digital Turkish Lira as part of a study project titled “Central Bank Digital Turkish Lira Research and Development.”
At the time, the government did not commit to the eventual digitization of the nation’s currency, stating that “no final decision has been taken regarding the issuing of the digital Turkish lira.”
The CBRT said in its most recent announcement that it would continue testing distributed ledger technologies in payment systems and their “integration” with immediate payment systems.
In addition, it will emphasise research into the legal components of the digital Turkish Lira, such as the “economic” and “legal framework” surrounding digital identity, as well as its technical needs.
Several nations, like the United Kingdom and Kazakhstan, have lately begun exploring digital currencies issued by their central banks.
The Bank of England has begun accepting applications for a proof-of-concept CBDC wallet, while the Kazakhstan central bank has advocated the introduction of an internal CBDC as early as 2023 with a three-year implementation period.
Assistant governor Brad Jones warned in a speech on December 8 that a CBDC may displace the Australian dollar and cause individuals to leave commercial banks altogether.