Turkey has officially joined the list of countries that are working on digitizing their fiat currency. On November 5, state-run publication Anadolu Agency reported that Turkish President Recep Tayyip Erdogan had ordered government officials to wrap up the testing phase of the country’s national CBDC (central bank digital currency). In line with next year’s Annual Presidential Program, the president targets to finalize the digital version of lira before 2020 ends.
The 2020 Annual Presidential Program was published on November 3. In the document, the president emphasized that the initial trials of the country’s national digital currency should be completed by next year. According to Resmi Gazete, the government’s official publication, the completion of the project would pave the way for the creation of an instant payment software platform that would run on the digital lira.
The central bank of Turkey would be assisted by Turkey’s Scientific and Technological Research Council, a tech innovation organization that is more popularly known as TUBITAK, to speed up development.
According to industry reports, the plan to launch a national digital currency is one of Turkey’s strategies to strengthen its financial industry. Notably, the last few years bore witness to a struggling sector due to high inflation. The economic challenges were made even worse by the country’s deteriorating relationship with the United States.
Among the top reasons why Turkey is now a subject of US President Trump’s angst is the decision of Ankara, Turkey’s economic capital, to re-establish its cordial relation with Moscow. Furthermore, Erdogan’s administration had made independent decisions, which ultimately led President Trump to threaten to destroy the country’s economy.
To become a global financial center
Despite fears of sanctions, trade wars, and other risks, Turkey decided to work on a Blockchain-based digital currency for the benefit of its local economy. As emphasized in the document, the main goal behind the project is to build a financial ecosystem with strong foundations such as a national digital currency. The financial sector needs a cost-effective tool that can quickly create a massive investor base. Turkey believes that having a more stable financial ecosystem with reputable institutions would soon make the country an attractive spot for global investors.