Turkey is planning to launch a central bank digital currency (CBDC) that will be integrated with the country’s digital identity system and the Central Bank of the Republic of Turkey’s FAST instant payments service.
The integration will form part of the next phase of the country’s Central Bank Digital Turkish Lira Research and Development Project that will also include testing the use of the CBDC for payments as well as for wholesale banking transactions.
Turkey’s Presidential Strategy and Budget Directorate announced the plans in the Presidential Annual Programme for 2023, which stated that a “blockchain-based central bank digital currency will be put into practice”, according to a CoinDesk Türkiye report.
The Central Bank of the Republic of Turkey (CBRT) launched the first phase of its CBDC project in September 2021 when it announced plans for limited closed-circuit testing of a prototype digital Turkish lira network prior to “advanced phases of the pilot study that will reflect broader participation”.
The CBRT was one of 26 central banks that contributed to the Bank For International Settlements’ ‘CBDCs in Emerging Market Economies’ report in April.