Turkey’s Central Bank Digital Currency: a progressive step in Digital Turkish Lira 

The Central Bank of Turkey (CBRT) has embarked on a multi-phase project to develop the Digital Turkish Lira (DTL) a sovereign digital currency aimed at enhancing financial resilience accessibility and privacy. In Phase 1 Turkey achieved significant milestones including successful pilot tests and the integration of a self-sovereign digital identity system (Self-Sovereign Identity) (which gives individuals control over the information they use to prove who they are to websites) for secure transactions. Looking ahead Phase 2 will expand the DTL’s scope to encompass broader retail and wholesale payment scenarios aligning with Turkey’s digital transformation goals. This initiative places Turkey at the forefront of Central Bank Digital Currency (CBDC) development with a distinct focus on national sovereignty and financial inclusion. 

Introduction

CBDCs have received more publicity in the last ten years...