Turkey’s central bank completes first CBDC test with more to come in 2023

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The Central Bank of the Republic of Turkey (CBRT) has completed the first trial of its central bank digital currency (CBDC), the digital Turkish lira, and announced its intention to continue testing throughout 2023.

According to a statement released by the CBRT on December 29, the central bank authority said it had successfully executed its “first payment transactions” using the digital pound.

It said it would continue to conduct limited closed-loop pilot testing with tech players in the first quarter of 2023, before expanding to include select banks and fintech companies in the rest of the year.

He said the results of these tests will be shared with the public through a “comprehensive assessment report”, before further unveiling the next phases of the study that will further broaden participation.

Turkish central bank first announcement He was looking at the benefits of introduction of a digital Turkish lira in September 2021 as part of a research project titled “Central Bank Digital Turkish Lira Research and Development”.

At the time, the government made no commitment on the ultimate digitization of the country’s currency, noting that it had “not taken any final decision regarding the issuance of the digital Turkish lira”.

In its latest statement, the CBRT said it would continue to test the use of distributed ledger technologies in payment systems and their “integration” with instant payment systems.

It will also prioritize the study of legal aspects around the digital Turkish lira, such as the “economic framework” and the “legal framework” around digital identification, as well as its technological requirements.

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Several countries, including the UK and Kazakhstan, have recently started piloting central bank digital currencies.

The Bank of England has opened applications for a proof of concept for a CBDC wallet, while the central bank of Kazakhstan has recommended the introduction of an internal CBDC as from 2023 with a phased implementation over three years.

The Reserve Bank of Australia (RBA) has recently expressed hesitation about its own CBDC plans, with Deputy Governor Brad Jones warning in a Dec. 8 speech that a CBDC could move australian dollar and lead people to avoid commercial banks altogether.