Türkiye advances digital lira with legal framework and pilot tests

Türkiye is intensifying efforts to develop a digital version of its national currency, with the Central Bank preparing to conduct comprehensive simulations and establish regulatory frameworks in the coming year. The Digital Turkish Lira initiative, outlined in the 2026 Presidential Annual Program, represents a significant step in modernizing the country's financial infrastructure and expanding its technological sovereignty.

Technical Development and Testing Phase

According to the official program, the Central Bank will complete impact analysis simulations for the digital currency next year. These tests will assess the digital lira's functionality in various financial scenarios, particularly focusing on technical requirements for securities exchange. The bank will also conduct proof-of-concept analyses examining how the digital currency could facilitate tokenized securities transactions, potentially revolutionizing capital markets operations.

Building a Comprehensive Digital Ecosystem

The Central Bank has already initiated outreach to financial institutions, issuing a call for participation in the Digital Turkish Lira ecosystem project. This initiative aims to engage banks, payment institutions, electronic money providers, and technology firms in developing innovative applications for the currency. The digital lira is envisioned as a cornerstone of Türkiye's expanding fintech landscape, with infrastructure development underway to support diverse use cases beyond traditional payments.

Regulatory Framework and Implementation Timeline

Parallel to technical development, authorities are advancing work on the legal and regulatory structure governing the digital currency. The Central Bank is drafting regulations that will define operational parameters and ensure financial stability. A progress report detailing findings from the project's second phase is expected in the coming months, providing further insight into the implementation roadmap for Türkiye's central bank digital currency.