The development of technology and the digitalisation of the economy lead individuals to reduce their use of cash or to turn to private digital payment methods. For this reason, central banks have been conducting research for some time on digital payment methods designed to provide citizens with an option for situations where physical cash cannot be used.

IKV Chairperson Dr Ayhan Zeytinoğlu, who made evaluations regarding the digital euro defined as the digital form of the currency issued by the ECB, included the following statements in his remarks:

“The EU’s digital euro initiative emerges as a strategic step aimed at preserving the role of the currency issued by the central bank in the face of the digitalising economy and payment systems. If the efforts intensified by the European Central Bank (ECB) with the Single Currency Package presented by the European Commission in 2023 are successful, it is aimed for the digital euro to become legal tender and to serve as the digital equivalent of physical cash. When the digital euro enters circulation, the EU economy will become more digital, efficient and resilient and will reduce its dependence on providers outside Europe. Once the necessary regulations are completed, the digital euro will start to be used in 2029.”

In the continuation of his statement, IKV Chairperson Dr Ayhan Zeytinoğlu referred to the studies on “the digital Turkish lira” conducted by the Central Bank of the Republic of Türkiye (CBRT):

“Our Central Bank has been conducting research for some time on the feasibility of issuing a digital Turkish lira that can complement the existing payment infrastructure. With the bilateral Memorandum of Understanding signed by the CBRT, which initiated proof of concept studies in 2020, with ASELSAN, HAVELSAN and TÜBİTAK, the ‘Digital Turkish Lira Collaboration Platform’ was established. It is aimed that the digital Turkish lira will be compatible with future technological innovations, will not harm financial systems and can be easily used by consumers. Simulation studies on its adoption are expected to be completed within this year.

Initiatives of central banks regarding digital currencies have accelerated in many countries, especially the CBRT and the ECB. We can evaluate this trend as a reflection of the efforts of central banks to maintain and strengthen their effectiveness and regulatory roles in the global financial system. At the same time, these digital currencies aim to support financial sovereignty by reducing dependence on private payment systems and to ensure that individuals have access to secure, accessible and transparent payment instruments. In today’s environment of political and economic uncertainty, digital currency initiatives are of great importance both in responding to the requirements of the digitalising world and in ensuring autonomy.”