As the country struggles with rising consumer prices and a double-digit inflation rate, in an announcement to members of Turkey’s parliament, central bank governor Naci Agbal revealed that a “conceptual” survey has been completed in a digital currency of the Turkish central bank (CBDC), and that practical tests for that currency would begin in the second half of 2021.
“There is an R&D project started with digital money,” said Agbal, according to two local vehicles. “Currently, the conceptual phase of this project has been completed. We plan to start pilot tests in the second half of 2021. ”
Although the announcement came as a surprise to some, Turkey has been researching a possible CBDC since mid-2019. Furthermore, as Cointelegraph previously reported, the launch of a digital Lira in 2021 would be really a delay – in November 2019, the Turkish President Recep Erdoğan announced that testing for a digital lyre system would be completed by the end of 2020.
Progress in a CBDC occurs as the country’s central bank fights inflation of up to 14%. In a statement to reporters last week, Agbal – who was named president of the central bank last month – said the bank is “determined” to reduce inflation and meet the 9.4% target for the end of the year.
Turkey was previously reported as one of the most active countries in the world in cryptocurrencies, with 20% of the population having digital money. However, new research shows that while many have faith in Bitcoin, these statistics can be somewhat inflated.