Turkey to complete digital lira testing in 2020

06 Nov 2019

Turkish liraPresident of Turkey, Recep Tayyip Erdogan has announced the government should complete tests on the national central bank digital currency (CBDC) in 2020.

Turkey’s national blockchain-based digital lira is scheduled to be issued by the central bank in accordance with the 2020 Annual Presidential Program, as reported by Coin Telegraph Turkey.

The Presidential Program details that the initial trials of the digital lira should be carried out and completed by the end of next year, as per a document published by the country’s official national publication, Resmi Gazete this week.

As part of the testing, the government reportedly plans to develop a software platform for digital lira-based instant payments.

Alongside the central bank, also involved in the project is the national technology innovation agency, the Scientific and Technological Research Council of Turkey, known as TUBITAK.

As previously reported by Coin Telegraph Turkey, the digital lira’s launch is within Turkey’s plans to bolster the local economy, as per the document: "The main objective is to establish a financial sector with a strong institutional structure that can respond to the financing needs of the real sector at a low cost, offer different financial instruments to a wide investor base through reliable institutions and support Istanbul's goal of becoming an attractive global financial centre."

The digital lira’s inclusion in the 2020 Annual Presidential Program of Turkey follows previous plans detailed by the government in the country’s 2019-2023 economic roadmap, unveiled in July.

As well as a CBDC, the government is looking into the implementation of blockchain technology for transportation and customs in addition to public services and administration.

In September this year, the Turkish government unveiled plans to establish a national blockchain infrastructure to utilise distributed ledger technology within public administration.

At the time Coin Telegraph stated: “This initiative will analyse different use cases such as land registration, academic certificates and customs to determine potential public sector applications.

“The Ministry of Industry and Technology is also planning to work with Turkish regulators to create a regulatory sandbox for blockchain applications.”