Turkey’s Central Bank Runs First CBDC Pilot, To Gain Prominence In 2023

On Thursday, the Central Bank of Turkey announced that it had successfully completed the first payment transactions using the Digital Turkish Lira Network as part of the first phase of experimentation. During the first three months of 2023, the central bank stated that it would proceed with the continuation of the Turkish CBDC’s “limited, closed-circuit pilot tests.”

Turkey’s CBDC Pilot

According to a statement released by the financial institution, the bank will continue to undertake tests for legitimate architectural setups established in areas such as the use of “distributed ledger technologies in payment systems and the integration of these technologies” with instant payment systems.

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As the central bank discloses more advanced phases of the ongoing pilot research, the firm wants to expand the Digital Turkish Lira Collaboration Platform to include a select number of banks as well as financial technology businesses.

The Turkish bank further states that studies on the economic and legal framework of the Digital Turkish Lira, in addition to its technological requirements, will be given priority for the entirety of 2023.

Global CBDC Push

Earlier this year, a report was published by the Federal Reserve of the United States that provided a detailed analysis of the benefits and drawbacks of CBDCs. And, on the other hand, the European Central Bank is also investigating various options for incorporating decentralized ledger technology into their already existing payment settlement systems.

Kazakhstan, Japan, Indonesia and India are some of the other countries aiming toward the adoption of digital currencies backed by their central banks.

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