Cryptocurrency

Amid inflation issues, Turkey broadcasts CBDC exams scheduled for 2021

amid-inflation-issues-turkey-broadcasts-cbdc-exams-scheduled-for-2021

As the country struggles with soaring consumer prices and double-digit inflation, Naci Agbal revealed in an announcement to members of the Turkish parliament's central bank governor that “conceptual” research into a digital currency operated by the Turkish Central Bank (CBDC) has been completed. and that practical tests for such a currency would begin in the second half of 2021.

"There is an R&D project that was initiated with digital money," said Agbal, according to two local outlets. “The concept phase of this project has currently been completed. We want to start pilot tests in the second half of 2021. "

While the announcement surprised some, Turkey has been investigating a possible CBDC since mid-2019. As Cointelegraph previously reported, the introduction of a digital lira would actually be delayed in 2021. In November 2019, Turkish President Recep Erdoğan announced that the tests for a digital lira system will be completed by the end of 2020.

The advances in a CBDC are due to the country's central bank grappling with inflation of up to 14%. In a statement to reporters last week, Agbal, who was appointed head of the central bank just last month, said the bank was "determined" to cut inflation and hit an end-of-year target of 9.4%.

It has already been reported that Turkey is among the most active countries in the world for cryptocurrency. 20% of the population hold digital money. However, new survey results show that while many believe in Bitcoin, these statistics may be a little inflated.

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Melinda Martin