Turkey eyes central bank cryptocurrency in its new development plan

July 11, 2019 | AtoZ Markets – This week the Turkish government has published a new economic roadmap. It is also known as the Eleventh Development plan and covers the period between 2019 and 2023. This plan will be used as guidance for bringing the country’s economy to a new level. The most interesting points that are mentioned in the plan are the ones that are related to blockchain tech and cryptocurrencies. Among them, there is a point presupposing that the country’s central bank will create its blockchain-based digital currency within the upcoming years.

Nevertheless, this initiative is not the only one in this plan that is related to the emerging tech. The government is also planning to implement the necessary legal and technological infrastructure that will allow utilizing the capacities of blockchain to address the issues associated with transport and customs aspects.

What’s more, the usage of blockchain alongside with artificial intelligence and the Internet of Things is considered by Turkey to be one of the most feasible ways to improve the sphere of public services. However, at the current moment, there is no precise information on how blockchain will be applied in this field.

Turkey proposal to issue state-backed cryptocurrency 

The first proposal to issue a state-backed cryptocurrency was made by Ahmet Kenan Tanrikulu, the deputy chair of Turkey’s Nationalist Movement Party and the country’s former Industry Minister. There were not many details revealed. But it was clear that the lawmaker wanted to use Turkcoin to tokenize asset-backed securities for the issuance. In his opinion, such an approach could help to minimize the financial risks associated with crypto.

The turkish government doesn’t reveal any further details about the proposed crypto. Nevertheless, it’s not the first time when the country pays attention to the possibility to launch a national digital asset. The idea to issue Turkcoin was announced in early 2018.

Development Plans concentration on blockchain and cryptocurrency

Recently, development of the central bank’s crypto came just after it was revealed that Turkey’s president Erdogan fired the bank’s governor, Murat Cetinkaya. According to Erdogan, now the central bank will play a more important role in the national economy. It is worth mentioning that the Eleventh Development Plan is not fully concentrated on blockchain and cryptocurrency. There are many other proposals also, however, most of them will also have an influence on companies conducting their activities in this area.

For instance, there are plans to create a Regulatory Experiment Area, an Association of Payment Services and Electronic Money Institutions, and the Istanbul Finance and Technology Base.

At the same time, in general, it is not surprising at all that now Turkey has chosen the direction aimed at building the economy with the strong support of blockchain and crypto. Despite various issues related to strict listing and on-boarding policies, Turkish banks have been cooperating with crypto exchanges for quite a long time.

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