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The Central Bank of the Republic of Türkiye Completes Phase 1 of Digital Turkish Lira
The Central Bank of the Republic of Türkiye (CBRT) has successfully completed the first phase of its digital Turkish lira and is now preparing to move on to advanced phases for more widespread pilot tests.
Evaluation Report on CBDC
According to a recent evaluation report, the CBRT is getting ready for all aspects of the circulation of the central bank digital currency (CBDC). The phase 1 involved preliminary tests of strategic technologies and pilot test studies at specific locations to measure the user experience and system performance.
The evaluation report is a compilation of findings and assessments such as digital currency transactions, wallet application, and digital identification. According to the report, the focus is on preparing a system that fully meets the requirements and principles of digital currency rather than just the technology itself.
CBRT’s Digital Lira Efforts
The report also highlighted CBRT’s digital lira efforts that began in 2021, exploring the feasibility and implementation of a CBDC. Additionally, it mentioned that the central bank successfully executed the first payment transaction on the digital Turkish lira network in December 2022.
Furthermore, a Chainalysis research in September 2023 revealed that Turkey’s crypto adoption rate has increased significantly from 16% to 40%.
Phase 2 and Future Activities
As the CBRT moves into the second phase, it plans to continue with research and development activities and explore conversions between forms of CBDC, smart payments, offline payments, legal, and economic dimensions. The Digital Turkish Lira Collaboration Platform will be expanded to involve new participants, and pilot tests of different scenarios will be conducted.
Finalizing the Design and Architecture
However, the CBRT is yet to finalize the architecture and design of the digital lira. It is currently looking at possible design options and whether they meet the economic, legal, and fiscal requirements for CBDC. A decision on its circulation will be made following the assessments.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
