Turkey Set To Pilot Its Digital Currency Next Year

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The central bank of the European nation via its Chief central banker Naci Ağbal has revealed that an undisclosed digital currency is set to launch by the 3rd quarter of the next year. In a meeting last Friday with the members of parliament, Naci has disclosed to them that the National digital currency will see the light by the second half of 2021.

This new confirmation has placed Turkey, alongside leading countries like China and Sweden, on the fast track to a Central Bank regulated Digital Currency. This new development is surprising, considering Turkey being a crypto-adoptive nation, its ambition of releasing a digital regulated currency was unknown to many, especially to The Bank for International Settlements(BIS) in the country, until the new announcement by Naci.

The CBDC race by Turkey and the others

In no doubt, many countries are continuing to adopt cryptocurrencies into their system and economies to trade and of recent foreign exchange. This new adoption is now forcing Central Banks of most countries to consider integrating a digitally regulated currency into their system.

Turkey, on the other hand, is now positioning itself to overtake many CBDC projects. In a report by the BIS, the rate at which many central banks of nations are considering the digital currency has tripled in the 12months, but only Sweden, China, the Bahamas have been able to move to the pilot phase/soft launch.

In September, a local crypto outlet Koin Bülteni had reported that the Central Bank of the nation was hiring experts for its digital currency research and development team. It is worthy to note that China has already begun testing the digital currency across its Province since late October 2020. There is no official date as to when Turkey will launch the proposed currency.

United States, Japan, and Co. considering the CBDC as China set to launch

It is no longer news that many countries will begin to consider digital currency amidst a lot of ongoing interest at the moment. According to reports, China, which had commenced testing in the last quarter of the year, will launch the Digital Yuan early next year. The digital yuan is designed to replace cash in circulation, such as coins and banknotes, not money deposited long-term in bank accounts.

Unlike cryptocurrencies like bitcoin, the digital yuan will not use blockchain distributed ledger technology. With over $300million transacted between the last two months and now, the digital yuan tests have been a success so far across the Asian Country. So far, the NFC(Near Field Communication) innovation, which requires no internet in the transaction, i.e., buying, selling, and transfers with this digital currency, has been used to spend the digital currency in China.

A former Governor of the People’s Bank of China(PBoC), Zhou Xiaochuan, noted that some countries are worried about the yuan’s digitalization. He further stated that China Cannot push them or neither impose their will on sensitive issues like this, but they will have to take patience to understand why they are making such decisions. He further concluded that he is aware that PBoC has been working with the Chinese government on the National Digital Currency for the past seven years.