As part of the first-phase work of the Digital Turkish Lira Project, led by the Central Bank of the Republic of Turkey (CBRT), the first payment transactions on the Digital Turkish Lira Network have been successfully carried out.
The CBRT announced that it will continue the limited-scope, closed-loop pilot application tests it is conducting with technology stakeholders in the first quarter of 2023. It was also stated that the findings obtained from the tests will be shared with the public in a comprehensive evaluation report.
The Press Release on the Use of the Digital Turkish Lira contained the following statements:
As part of the first-phase work of the Digital Turkish Lira Project, led by the Central Bank of the Republic of Turkey (CBRT), the first payment transactions on the Digital Turkish Lira Network have been successfully carried out. The CBRT will continue the limited-scope, closed-loop pilot application tests it is conducting with technology stakeholders in the first quarter of 2023. The findings obtained from the tests will be shared with the public in a comprehensive evaluation report.
The Digital Turkish Lira Collaboration Platform will be expanded in 2023 with the participation of selected banks and financial technology firms and the project will move on to advanced phases in which broad-participation pilot tests will be carried out. In this context, tests of the original architectural designs, on topics such as the use of distributed ledger technologies in payment ecosystems and their integration with instant payment systems, will continue.
The work on the legal dimension of the Digital Turkish Lira shows that digital identification is of critical importance for the project. Therefore, throughout 2023, priority will be given to work on the economic and legal framework of the Digital Turkish Lira, in addition to its technological requirements.
This is announced for the information of the public.
WHAT IS A CENTRAL BANK DIGITAL CURRENCY?
"A Central Bank Digital Currency is a digital currency issued by the Central Bank of the Republic of Turkey (CBRT).
The purpose of this currency is to make transactions between institutions and organizations in Turkey easier and faster. A Central Bank Digital Currency can also be thought of as a digital version of the Turkish Lira, and it is made available to users through a service provided by the CBRT.
A Central Bank Digital Currency is used through digital wallets. These wallets are the tools users need to store their digital currency and carry out their transactions. Digital wallets allow users to access their digital currency and perform their transactions.
ADVANTAGES OF THE DIGITAL TURKISH LIRA
According to the periodic reports of the Interbank Card Center (BKM), the total number of credit cardholders in Turkey rose from 58 million 215 thousand 318 in 2015 to 93 million 832 thousand 954 in 2022.
As for card payments made on the internet, 324 million 392 thousand 63 payments were made in 2015, while a total of 1 billion 302 million 794 thousand 158 payments were made in the first eight months of 2022.
The rapid spread of payments made in digital environments is the main reason why governments are working in this area.
With the Digital Turkish Lira:
- Monetary transactions are carried out digitally over the internet, without limits of time or place, 24/7.
- Money movements are open to the oversight and supervision of regulatory and supervisory authorities.
- Because CBDC is produced digitally in a virtual environment, its production cost is zero. It significantly increases the state's seigniorage revenue.
- Because all these transactions will be easy and cheap in a digital environment in the CBDC system, the transaction costs arising from storing money, delivering it to banks, keeping it in banks, withdrawing it from banks and transporting it may approach zero.
- Thanks to the Central Bank Digital Turkish Lira, transactions between institutions and organizations in Turkey are recorded more easily, and problems that may arise while carrying out transactions can be prevented.
You can find the relevant press release at the link below.
https://tcmb.gov.tr/wps/wcm/connect/TR/TCMB+TR/Main+Menu/Duyurular/Basin/2022/DUY2022-55
