Turkey to include central bank digital currency in economic development plan

The Turkish government released the central bank's economic roadmap for 2019-2023 on July 9, which includes plans for the issuance of a central bank digital currency.

In addition to issuing Central Bank Digital Currency (CBDC) supported by blockchain technology, the development plan also outlines the adoption of blockchain in transportation and customs operations, and highlights how emerging technologies like big data, artificial intelligence, and blockchain can improve public services and management.

Turkey's Vice President Fuat Oktay submitted the development plan to the country's budget committee, stating:

"During the development plan, we will focus on energy and development policies."

The report indicates that Turkey has been considering issuing a national cryptocurrency. In a February 2018 interview, the country's economist and then Deputy Prime Minister Mehmet Simsek stated:

"We attach great importance to digitization and will soon launch plans related to Turkey's digital currency."

However, some officials within the Turkish government remain skeptical of cryptocurrencies, with some ministers even comparing such projects to Ponzi schemes.

According to a previous survey, the Turkish people have one of the highest cryptocurrency ownership rates globally. Data analysis company Statistica reported in its 2019 Global Consumer Survey that about 20% of the Turkish population are cryptocurrency holders.

An International Monetary Fund (IMF) report has predicted that central banks around the world will issue digital currencies in the near future. Countries such as Uruguay with its central bank digital currency pilot program are leading the way, while several others including the Bahamas, China, the Eastern Caribbean Currency Union, Sweden, and Ukraine are set to conduct tests.

Furthermore, a previous report by ABM highlighted that the Swiss economic think tank Avenir Suisse strongly advocates for the government to create a national cryptocurrency, believing it could enhance the Swiss financial industry, help Switzerland surpass its European counterparts, and expand global market possibilities.

Further Reading

• Panama Central Bank Signs Agreement to Implement First National Cryptocurrency in 2020
• World Economic Forum Blockchain Chair Sheila Warren: This Technology Can Solve the Crisis of Trust

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