• The Central Bank of the Republic of Turkey (CBRT) has successfully carried out the first trial of its CBDC, the Digital Turkish Lira.
• Many countries are exploring the use of central bank digital currencies, with China, Hong Kong and Mainland China set to launch the first cross-border pilot project and Japan’s central bank likely to begin its digital yen pilot in 2023.
• India’s central bank has also undertaken its first pilot for retail digital currency, with four local banks and four major cities participating in the trial.
The Central Bank of the Republic of Turkey (CBRT) recently conducted the first successful trial of its central bank digital currency (CBDC), the Digital Turkish Lira. This is a significant milestone in the country’s modernizing of its financial system and increasing of financial inclusion.
The CBRT issued a press release on December 29, in which it stated that, “In the scope of the first-phase studies of the Digital Turkish Lira Project, conducted under the leadership of the [CBRT], the first payment transactions on the Digital Turkish Lira Network were executed successfully.”
Turkey is not the only country exploring the use of CBDCs. In fact, many countries are actively pursuing the implementation of digital fiat. China, for example, has been at the forefront of the CBDC movement and recently expanded its digital yuan pilot to include additional cities. Additionally, Hong Kong and Mainland China are set to launch the first cross-border pilot project for the digital yuan.
The National Bank of Ukraine (NBU) introduced a draft concept for its CBDC, digital hryvnia, or e-hryvnia, at the end of November. India’s central bank also announced that it would undertake its first pilot for retail digital currency on December 1, with four local banks and four major cities participating in the pilot.
Furthermore, Japan’s central bank could begin piloting the digital yen as early as spring 2023 and will reportedly start a trial involving “consumers and private sector companies.” It is expected that more countries will begin exploring the use of central bank digital currencies in the near future.
The use of CBDCs could potentially bring many benefits, such as faster and cheaper international payments, increased financial inclusion, better customer service and greater transparency. Such digital currencies could also provide a more efficient way of conducting transactions, as well as providing a more secure and reliable means of payment.
The implementation of such digital currency systems could prove to be a great leap forward for many countries, as it could create new opportunities for economic growth and development. With the increasing number of countries exploring the use of CBDCs, it is expected that more countries will join the trend in the near future.