The Digitalization of the Turkish Lira; A New Step Toward the Economy of the Future
The Central Bank of the Republic of Türkiye has placed the "Digital Lira" project on its agenda with the aim of strengthening the country’s position in the regional and global digital economy. This digital currency is intended to be used in areas such as smart cities, micro-payments, and cross-border transactions.
The Necessity of a Comprehensive Move Toward the Digital Economy
Transitioning to a digital economy requires strategic planning, a holistic vision, and full collaboration among all stakeholders. For this digital transformation to succeed, strong foresight, serious determination, and effective interaction among institutions are essential.
In this regard, integration with digital infrastructure is seen as a fundamental step toward enhancing global competitiveness, strengthening economic independence, and increasing the level of social welfare in Türkiye.
How Is the Digital Lira Project Progressing?
The Central Bank of Türkiye is managing the Digital Lira project within a joint platform in collaboration with other institutions. In the first phase of this project, a blockchain-based payment system, server software for banks, and a mobile wallet application supported by digital identity were developed.
In the subsequent phases, features such as offline payments, programmable payments, and hardware wallets will be designed and implemented. Integration of the Digital Lira with existing infrastructures such as the FAST system and e-Devlet is also planned.
Innovative Uses and Broad Objectives
This system, as one of the key components of Türkiye’s financial infrastructure, will play a role in increasing security, reducing costs, and improving management. Furthermore, it will have extensive applications in micro-payments, smart cities, and international transfers.
“KOSGEB Digital Wallet” Is on the Way
In order to increase the effectiveness and better tracking of government support, a new system called “KOSGEB Digital Wallet” has been designed. This system digitizes all stages from application to payment.
With the help of this tool, support payments will only be carried out for approved and specified items. Also, through data analysis, it will be possible to evaluate and improve the support mechanisms.
Continuing Research and Development in the Second Phase of the Digital Lira
The Central Bank of Türkiye is thoroughly examining the economic, legal, and security dimensions of the Digital Lira in the second phase of the project. At this stage, research and development activities continue on topics such as digital identity, mobile applications, offline payments, and cyber security.
“The first phase report stated that the Digital Lira is different from cryptocurrencies and is not considered a cryptographic asset.”
The project began in 2020 with the proof-of-concept phase, and in 2022 the first pilot transactions were successfully carried out. Currently, in this year, the project has entered its second phase and efforts continue for its full-scale implementation.
Permanent Access to Central Bank Digital Money
With the launch of this system, circulation of the Digital Lira will be possible 24 hours a day, 7 days a week; a major step in the digital transformation of the country's financial system.
