Turkey to Complete Development of National Digital Currency by 2020

Turkey Crypto Digital Currency

Turkey’s state-sponsored outlet Resmi Gazete, which regularly announces details of new legislation and publishes official announcements of the Turkish government, released a document detailing the progress of the digital Lira.

The document was published early this week and affirms that the initial trials of the new digital currency would be conducted and completed by the end of next year.

Cointelegraph Turkey reports that the country’s central bank aims to issue the digital Lira in hopes of strengthening Turkey’s economy. Turkey’s President Recep Tayyib Erdogan appears to be very focused on instructing the government to complete the development of a central bank digital currency (CBDC) by the year 2020.

The comprehensive document details how the CBDC will be probed and tested next year to make sure it is ready for the public use. Turkey’s government intends to create a digital platform where individuals and companies can easily carry out electronic payment using the digital form of Lira, the local fiat currency.

The document specifies that the primary objective of the digital currency is to establish strong institutional structure in the financial sector so it can cater to the increasing economic needs of the real sector at a significantly lower cost. It can also offer various financial instruments to broaden the investor base by using credible institutions. The document also says that this can help in presenting Istanbul as an attractive international financial capital.

The government of Turkey is also making sure that the central bank is collaborating with various other technology firms and the Scientific and Technological Research Council of the county (TUBITAK). It will ensure that the financial sector is strengthened as local central bank digital currency is used.

Previously, the Turkish Lira faced huge depreciation of value against the US dollar. In 2018, the Turkish Lira was reduced to almost 50% of its value which was later on this year has increased by 16%. This year, Turkey was able to grow its economy by reaching a stable 1.2% growth in Q2.

More Countries Have Digital Currency Ventures

Turkey’s decision to work on a state-issued digital currency comes after other countries, including China, shared their decision to develop and launch their country’s own digital currency. China finally made the announcement this year after over five years spent of pre-planning research and development strategies.

In the previous week, over 200 private banks based in Germany formed an association and called for the development of a digital Euro. The US federal reserve has also engaged in active research to integrate cryptocurrencies into its digital payment system. Just recently, IBM published a research indicating that in five years at most central banks will issue native cryptocurrencies.

It certainly seems that Turkey is on its path to introduce a national digital currency of its own way ahead of IBM’s prediction.

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