Many countries accelerate their Central Bank Digital Currency efforts to utilize blockchain technology's advantages. Turkey is making significant strides in this area with the digital lira.
Digital Turkish Lira
The Central Bank of the Republic of Turkey has completed the first phase of its Central Bank Digital Currency project and shared the details. The Digital Lira is a significant step towards integration into the digital economy, with the second phase of work continuing in 2025. The bank's research aims to enhance efficiency and speed while reducing costs of financial operations.
CBDC Risks and Challenges
Despite the advantages of the Digital Lira, the issue of constant surveillance is concerning. China's experience with the digital yuan showed that countries like the U.S. reacted negatively to the risks associated with privacy loss. Although programmability of money may be appealing, it also poses risks for users due to possible constant monitoring.
Partnerships and Future Prospects
The process is supported by major strategic partners such as ASELSAN, HAVELSAN, and TÜBİTAK, involving work on digital wallets and identity applications. Future endeavors will continue pilot tests, in-depth research, and implementation of new solutions to expand digital currency usage.
The development of the digital lira is a major milestone in Turkey's financial transformation. Positive experiences and lessons from current tests and research will help address challenges and threats that may arise in the future.
