Turkey: Central Banker Naci Agbal is Preparing a Digital Currency

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Turkey is in the works of a Cryptocurrency alongside corrective moves for Turkish Lira.

For the first time, it was revealed by official lips that Turkey is preparing a cryptocurrency to be released in decentralized financing (Defi) in the second half of 2021.

That is what the country’s central banker Naci Agbal allegedly told members of parliament on Friday.

According to information carried by Turkish media, he said among other things:

There is a project that started with digital money. The study is currently complete. Our goal is to start pilot trials in the second half of 2021.

From these words, Agbal seems to be on the way to a digital currency but with relative control from the central bank. On the other hand, at a time when other cryptocurrencies (bitcoin, Ethereum, etc.) have penetrated Turkish society to a very large extent due to the lack of confidence in the national currency, Agbal will rightly try to replace this demand.

But cryptocurrencies and state control are incompatible concepts.

Only Sweden, China and the Bahamas – have advanced to a pilot phase/soft launch digital currency.

However, the details of this project in Turkey have not been known.

Local cryptocurrency store Koin Bülteni reported in September that the central bank had hired experts for the digital currency research and development team. Among the topics, the team deals with are blockchain technology, encryption, and big data.

Jump for the Turkish Lira

Meanwhile yesterday the country’s central bank announced that it had raised the base rate to 17% after it had raised it by 475 basis points to 15% in November.

The Monetary Policy Committee explained in communication that this new increase is part of efforts to stem inflation, which is expected to exceed 14% by the end of 2020.

The Turkish lira recorded a five-week high following the announcement of the decision. The Turkish currency strengthened earlier to 1% to 7.5420 pounds per dollar.

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