Turkey Joins China, India to Launch Larger-Scale CBDC Studies: Details

While 2022 wasn’t exactly eventful for the crypto sector, it was shaping up to be a landmark year for central bank digital currencies (CBDCs). Turkey has become the latest member of the CBDC club to touch a significant point in its CBDC trials. The Central Bank of the Republic of Turkey (CBRT), which began its CBDC trials earlier this year, has completed its first phase before the end of 2022. The CBDC of Turkey is called Digital Turkish Lira.

For now, Turkey has been conducting pilot tests of its closed-loop CBDC. In the first three months of 2023, the CBRT plans to adopt this CBDC Test for selected banks and fintech companies, which will last until the end of next year.

“Studies on the legal aspects of the Digital Turkish Lira show that digital identification is crucial to the project. Therefore, studies on the economic and legal framework of the Digital Turkish Lira as well as its technological requirements will be a priority in 2023,” the Central Bank of Turkey said in a statement official statement.

Built on top of the blockchain, each nation’s CBDC is just a digital representation of its fiat currency. Unlike traditional digital transactions blockchain networks Capture all transactions with more transparency while keeping them protected from any changes or modifications. CBDC transactions could prevent cases of financial fraud.

This year, a number of nations have expanded their roots in the CBDC sector.

India, for example, marked some crucial milestones in its CBDC studies. earlier this month, India’s digital rupee CBDCofficially entered retail testing phase in four cities – New Delhi, Mumbai, Bengaluru and Bhubaneswar – in cooperation with State Bank of India, ICICI Bank, Yes Bank and IDFC.

That RBIwhich oversees the digital rupee testing, is testing the CBDC with select merchants and customers for everyday retail purchases.

The official launch of India’s CBDC could see the light of day sometime in 2023.

China too, which has launched its own e-CNY-CBDC for wider study this year has begun to push its adoption among the masses.

This week, Chinese authorities rolled out a feature for existing CBDC users to send financial gifts to their friends and family ‘red packet’. The “red packets” — also known as “hongbao” — are considered a symbol of “luck” and are used to present money to people at festivals in the Asian nation as a good luck gesture.

Kazakhstan and Pakistan are trying to facilitate the phase-in of their respective CBDCs around 2025.

Japan and South Korea are also making progress with their CBDC pilot projects.

Meanwhile, some countries have already fully legalized their CBDCs this year.

Nigeria, for example, launched its CBDC called the eNaira earlier this year. To encourage the use of this CBDC, the Nigerian government has banned weekly ATM withdrawals above $225 (approximately Rs. 18,565) and daily ATM withdrawals at $45 (approximately Rs. 3,710) in the African nation.

Jamaica also published his Jam-Dex CBDC for commercial purposes.