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Turkey government to trial digital currency in 2021

Turkey government to trial digital currency in 2021

Recently, governments and central banks concentrate on the development of Central Bank Digital Currency. Turkey is the latest addition to the list of nations trialing their CBDC. Turkey plans to test a CBDC (central bank digital currency) in the latter half of 2021. The nation is gaining promotion with a CBDC faster than other countries are supposedly doing, following Sweden, China, Korea, which have already advanced into trial phases for their respective digital currencies.

Turkey is set to surpass prominent CBDC projects of other countries.

Previously, Turkey rarely expressed any digital currency ambitions. Moreover, The Bank for International Settlements (BIS) does not consider Turkey as having an effective CBDC project in its running database. Nonetheless, Turkey is now planning to overtake several well-established CBDC projects. Although 80% of central banks are contemplating CBDC, according to the BIS, only a few – Sweden, China, the Bahamas – have advanced to the pilot phase or launching phase of the currency. 

Moreover, in September, Turkey’s Central Bank was appointing experts for its digital currency R&D team. The expedition of Turkey’s CBDC growth was mainly due to China’s progress in its digital yuan trials. Thus, advocating Turkey an example to examine and implement better structuring and planning in its trial program.

In accordance with Turkish media, Koinbulteni, the Chairman of the Central Bank of the Republic of Turkey (CBRT) Naci Ağbal, addressed the TBMM Plan and Budget Committee, stating that the conceptualization of the CBDC was perfect. The aspects of the deemed CBDC have not yet been unveiled. Moreover, it is unclear about the utilization of digital currency, whether for retail or institutional use.

Earlier, the Bahamas launched the Sand Dollar. Thus, making the Bahamas the first nation in the world to formally issue a central bank digital currency (CBDC) past the testing phase. The digital currency Sand Dollar intends to establish more financial integrations amongst many of Bahamas’ remote islands. The Sand Dollar is based on DLT, in this case, a blockchain. The central bank appointed transaction provider NZIA as its technology solutions provider for the digital currency rollout. 

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