Turkey is preparing to launch a digital currency that can be traded in the financial markets

The digital lira will be based on the official exchange rate of the Turkish currency (The New Arab)

Rahmi Aktaba, president of the Turkish Informatics Association, said experts from central bank And the Turkish Scientific and Technological Research Authority “TUBITAK”, are working on launching digital currency formal, based in value on country currency.

In an interview with Anadolu Agency published today, Aqtaba said that issuing a digital currency based on the Turkish lira and having a tangible financial return with the possibility of trading and selling in the regular financial markets is very important for the development of the Turkish digital economy.

He added, “Over the past months, a significant increase in investments has been observed, or in conducting financial operations using digital currencies, especially Bitcoin and Ethereum, and this increase comes in conjunction with the rapid digital transformations the world is witnessing, which increases investors’ interest in digital currencies day after day.”

He pointed out that there are more than 3,500 digital currencies that can be bought and sold on digital platforms that are not subject to government regulation, and these platforms are known as cryptocurrency exchanges.
He pointed out that these exchanges do not have a central structure, stressing that all transactions related to this platform are carried out without intermediaries.

Aqtaba pointed out the importance of the investor being able to make reliable investments in digital currencies, and that this may be possible by having a basic level of infrastructure, technology and digital principles to deal with thousands of digital currencies traded and analyze and create a portfolio.

He advised those who do not have enough information about the digital money market to stay away from websites and mobile applications that may be fake, and to be wary of falling prey to fraud.

Last April, the Turkish judicial authorities launched a large-scale investigation into what was described as the “largest” financial fraud in the history of the republic, carried out by the Thodex cryptocurrency company, which claimed the lives of 391,000 customers.

He also pointed out that there is no integrated legislation anywhere in the world regarding crypto or digital currencies, but work on drafting such legislation is underway in many countries.

Aqtaba explained that a regulation on dealing with cryptocurrencies in Turkey was prepared last April, and that the annual presidential program for 2020, which was published in the Official Gazette, included the digital cash project and the development of an official digital currency under the supervision of the Central Bank of Turkey.

He pointed out that experts are also working on creating a new transfer system for digital currencies that are based on a tangible physical basis, and indicated that the transfer system being worked on, called “Pica”, allows currencies that have a financial equivalent, the use of transfer techniques, and users to verify the validity of Transfer, it also provides the financial regulatory authorities with the control of financial transactions.

He stressed the importance of developing the country’s digital economy by developing a digital currency based on the Turkish lira, behind which there is a physical asset, which can be sold in regular money markets, participation with banks and coordination with regulatory agencies.

A number of central banks in the world are moving to issue reliable digital currencies, as Lyle Brainard, a member of the Federal Reserve (US Central Bank), said last Monday that the bank is intensifying its efforts to explore the potential development of a digital version of the dollar.

And US Treasury Secretary Janet Yellen said, in an interview with The New York Times last February, that the digital dollar would benefit the US economy.
Analysts view the “digital yuan”, which China is preparing to launch this year, on the grounds that it is the new genie that may revolutionize the global monetary and financial system built since World War II on the dollar, and thus may threaten the dollar’s throne and its control over settlement systems and exchange markets and weaken the role of the dollar. Washington in foreign policy.
The European Union announced earlier that it was heading to issue a “crypto euro”, according to a plan presented by the French government.

(Anatolian, New Arab)

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