Turkey is reportedly working in a blockchain-based digital currency and is set to finish testing by the end of next year.
The digital currency, a digital version of Turkey’s libra, is set to be issued by the country’s central bank when ready for launch, according to the country’s Annual Presidential Program. Turkey’s government is reportedly looking to also develop a platform to process instant payments based on the digital lira.
Resmi Gazete, Turkey’s only official journal publishing the country’s announcements and new legislation, published a document detailing the digital lira is part of plan to strengthen the country’s economy. The document reads:
The main objective is to establish a financial sector with a strong institutional structure that can respond to the financing needs of the real sector at a low cost, offer different financial instruments to a wide investor base through reliable institutions and support Istanbul’s goal of becoming an attractive global financial center.
The Turkish government is also reportedly looking into implementing blockchain technology in other sectors, including public services and administration. The move comes as China is also close to launching its own digital currency.
The U.S. Federal Reserve, the country’s central bank, is also mulling the launch of a digital dollar, and a recent job posting confirms it. Earlier this month, over 200 private German banks have also shown support for the issuance of a digital euro.