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The Digital Turkish Lira System will be merged with digital identity and the FAST payment system.
Turkey is all set to introduce a central bank digital currency (CBDC) by the next year. Turkey’s Presidential Annual Program for 2023, which was hosted by the Presidential Strategy and Budget Directorate, comprises the debate on the central bank digital currency for the country.
The declaration follows the country’s central bank’s public disclosure of its plans to utilize CBDC to support its present payments framework, which was revealed last year. The Central Bank of the Republic of Turkey (CBRT) has been looking into the possible advantages of launching a virtual CBDC Turkish lira. The process that began with the culmination of the proof of concept now trickles down to the next stage with the integration of technology stakeholders.
The technological research, development, and testing procedures of the Central Bank Digital Turkish Lira R&D project will be carried out in association with these technology stakeholders. While the initial phase revolves around examining the strategic and crucial technologies associated with the project, the eventual scheme is to develop the platform with the inclusion of newer participants.
The Balance of Payments segment of the undertaking, following the Policies and Measures, asserts that the blockchain-based central bank digital currency will be implemented. The accountable establishment is Turkey’s central bank with support from the local Ministry of Finance and Scientific and Technological Research Institution.
The Digital Turkish Lira System will be merged with digital identity and FAST, according to the formal report. FAST is a payment method managed by the Turkish Central Bank.
In its announcement in 2021, it was explained that the initial phase will witness CBRT develop a prototype and run limited closed-circuit pilot tests with technology shareholders. The tests will eventually help them analyze and determine the way forward with the advanced phases of the pilot study. There are also plans to diversify the exposure of the Digital Turkish Lira R&D Project into areas like blockchain technology, utilization of distributed ledgers, etc.