The Central Bank of the Republic of Turkey (CBRT) initiated the Digital Turkish Lira Collaboration Platform with the purpose of exploring the potential advantages of introducing a digital version of the Turkish lira alongside the existing payment infrastructure. This initiative falls under the umbrella of the Central Bank Digital Turkish Lira Research and Development (R&D) Project, which transitioned from the proof of concept phase to the subsequent stage involving technology stakeholders.
The CBRT conducted thorough technological research, development, and testing in close partnership with these technology stakeholders as part of the Central Bank Digital Turkish Lira R&D Project.
In the initial phase of the pilot study, the CBRT crafted a prototype known as the “Digital Turkish Lira Network” and executed limited closed-circuit pilot tests with technology stakeholders. It’s essential to note that the CBRT has not yet made a final decision regarding the issuance of the digital Turkish lira. All research is conducted in accordance with the principles of experimental R&D activities. The final determination will be made based on the completion of capacity assessments of various technological options and the finalization of architectural configurations. These evaluations will determine whether the existing technologies are aligned with the economic, legal, and financial requisites of the digital Turkish lira.
During the initial phase of the Digital Turkish Lira Project, led by the CBRT, the first successful payment transactions were carried out on the Digital Turkish Lira Network. The CBRT plans to continue conducting limited closed-circuit pilot tests with technology stakeholders in the first quarter of 2023. The findings from these tests will be shared with the public through a comprehensive evaluation report.
In 2023, the CBRT aims to expand the Digital Turkish Lira Collaboration Platform to include selected banks and financial technology companies. Additionally, advanced stages of the pilot study will be introduced, broadening the scope of participation. Under this framework, the CBRT will persist in testing genuine architectural setups in areas such as the application of distributed ledger technologies in payment systems and their integration with instant payment systems.
Research into the legal aspects of the Digital Turkish Lira underscores the importance of digital identification for the project’s success. Consequently, endeavors to establish the economic and legal framework of the Digital Turkish Lira, along with its technological prerequisites, will take precedence throughout the year 2023.
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