Turkey's Central Bank Finishes First CBDC Test With More In 2023.
Zach Anderson Dec 30, 2022 01:19
The CBRT's Digital Turkish Lira has completed its first experiment. On Dec 29, the CBRT announced its first digital lira payments. In the first quarter of 2023, it will conduct restricted, closed-circuit pilot testing with technology stakeholders.
After successfully completing the first test of its central bank digital currency (CBDC), the Digital Turkish Lira, the Central Bank of the Republic of Turkey (CBRT) has announced intentions to continue testing into the year 2023.
The Central Bank of Turkey (CBRT) claimed in a statement that it successfully performed its first payment operations using the digital lira on December 29, according to a statement that was made by the CBRT.
It was said that it will continue to conduct restricted, closed circuit pilot testing with technology stakeholders during the first quarter of 2023. After that, it would extend the program to include chosen banks and financial technology businesses over the remaining months of that year.
In September 2021, the Central Bank of Turkey made the first announcement that it will begin investigating the potential advantages of adopting a digital version of the Turkish Lira as part of a study initiative titled Central Bank Digital Turkish Lira Research and Development.
At that time, the government did not make any promise to the eventual digitization of the country's currency and made it clear that it had not taken a definitive decision regarding the release of the digital Turkish lira.
The CBRT said in its most recent statement that it would continue testing the usage of distributed ledger technologies in payment systems and their integration with immediate payment systems. This was mentioned in the CBRT's most recent statement.
In addition, it will make the investigation of the legal issues surrounding the digital Turkish lira a top priority. These issues include the economic and legal framework around digital identity, as well as the technical needs associated with it.
Recent months have seen the launch of pilot programs for digital currencies by central banks in a number of nations, including the United Kingdom and Kazakhstan.
The Bank of England is now accepting submissions for a proof of concept for a CBDC wallet, while the Kazakhstan central bank has suggested the adoption of an in-house CBDC as early as 2023, with the implementation being phased in over the course of three years.
The Reserve Bank of Australia (RBA) has lately shown some trepidation over its own plans for a CBDC. On December 8, assistant governor Brad Jones gave a speech in which he warned that a CBDC may displace the Australian dollar and cause individuals to completely forsake commercial banks.
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