Turkey to launch a CBDC in 2023

The digital lira will be integrated with the identification system and the FAST payment system

26.10.2022 - 06:45

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What’s new? Turkey’s Central Bank (TCMB) plans to launch a central bank digital currency (CBDC) next year. This proposal was mentioned in President Recep Tayyip Erdoğan’s annual program presented by the Presidential Strategy and Budget Directorate. It is noted that the Central Bank intends to develop, research and test a CBDC in cooperation with other financial institutions.

President’s management plan

What else is known? The proposal to launch a CBDC came a year after the Central Bank announced in September 2021 that it was considering issuing a CBDC. The asset was supposed to complement the existing payments infrastructure as part of a project called “Central Bank Digital Turkish Lira Research and Development.”

The Central Bank, the Ministry of Finance, and the Scientific and Technological Research Institution of Turkey are responsible for launching a new type of asset. The proposal notes that the digital lira system will be integrated with the Central Bank’s digital identification system and the FAST payment system.

Earlier, the Bank for International Settlements (BIS) presented a prototype of Hong Kong’s CBDC. The Aurum project includes a wholesale interbank system and a retail e-wallet system. The source code of the project is available to central banks within BIS. The project will also produce a CBDC-backed stablecoin.

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