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The Turkish Central Bank announced on Wednesday the signing of memorandums for collaborating with three local IT businesses to create the "Digital Turkish Lira Collaboration Platform." As the initiative progresses ahead, the pool of participants is likely to grow.
The Turkish Central Bank Is Collaborating With Local IT Businesses
The Central Bank of the Republic of Turkey has formed the Digital Turkish Lira Collaboration Platform by signing memorandums for collaborating with numerous local IT businesses.
ASELSAN, a significant defense business, HAVELSAN, a software and systems developer working in the defense and IT sectors, and TÜBTAK Informatics and Information Security Research Center are the three original technological stakeholders.
Participants in the project will assist the Turkish Central Bank in building and testing a prototype digital lira network.
While the statement does not specify the technical architecture behind the initiative, it does mention the potential of subsequently adopting “blockchain technology, the usage of distributed ledgers in payment systems, and integration with immediate payment systems.”
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The digital lira project, like the digital euro effort, does not commit to the ultimate digitalization of Turkey's currency, as the paper underlines that "the CBRT has taken no final decision regarding the issuing of the digital Turkish lira."
The results of the testing are due in 2022, following which CBRT will decide if the technology satisfies the requirements for future adoption.
Earlier this summer, Turkey's central bank prohibited cryptocurrency payments and restricted the breadth of financial services accessible to Bitcoin firms.
A legislative vote on the measure to provide regulatory certainty surrounding digital assets is still pending.