Cryptocurrency is an idea of the 21st century. However, it rapidly gained popularity owing to its security features, transaction speed, and cross-border nature. Many governments have started to understand their prospects, and they are taking initiatives to launch national cryptocurrencies to boost their economy. China has become the first nation to declare a central-bank backed crypto.

Turkey might follow the nation and become second to launch its official cryptocurrency. Turkey has revealed the plan to test the crypto early in the next year before circulating the coin nationwide. The main objective of this project is to revitalize the economy amid the recent crisis. 

Turkey eyes at 2020 for the introduction of crypto

There is no official announcement as to when the country would launch its cryptocurrency. However, local news reported that Turkey is planning to make this happen by the end of the next year. Resmi Gazete, the only official journal of the country published a document which includes a section indicating the first trials of the digital coin to be conducted and finalized by the end of 2020.

The main objectives of the cryptocurrency project have been outlined in the document. Turkey wants to build a financial sector with a robust institutional structure which will help revitalize the national economy through attracting foreign investments. The ultimate goal is to make Istanbul a tempting international economic zone and increase employment for the citizens.

According to data compiled by Anadolu Agency from the Annual Presidential Program of Turkey, the domestic cryptocurrency is at the design and development phase at this moment. The testing phase is anticipated to start in 2020. In line with the current program, Turkey will craft a roadmap for the development of Fintech ecosystem, under which a financial technopark will be established in the capital city.

Background of the cryptocurrency program

Turkish President Tayyip Erdogan disclosed the economic recovery plan earlier this year for the struggling country that has been plagued with debt and financial embargos. The idea of issuing digital lira is being viewed as part of the economic rescue package. The move came amid a resuscitated financial outlook for Turkey, which experienced inflation fall to its lowest level since 2015. Some economists feared that the might succumb to Greece’s situation, given its foreign debt of more than £35 billion. The country’s financial institutions have appreciated the rescue plan with a hope to reverse the crisis.

Particularly the idea of a domestic cryptocurrency seems to trigger a pleasing environment in both the business community and the general people. Turkey’s Vice President Fuat Oktay first came up with the idea in June, which is being implemented by the TUBITAK technology centre. The firm has put its highest effort in the development of digital lira and made significant progress for the government.

They are confident to complete testing of the coin by the end of 2020. The government promised to create a nationwide digital currency infrastructure as soon as possible to render the introduction of state-issued cryptocurrency smooth and easy.

Issuing domestic crypto is not easy

Turkey’s crypto initiative may inspire other nations to consider state-backed or other large-scale digital coin launches. However, the real scenario of government involvement in crypto affairs is not very pleasant so far. Several countries have attempted issuing state-backed crypto but ended up with no actual coins being distributed. 

Using currency other than Euro in the Eurozone is viewed negatively by the member nations. Venezuela’s Petro is another example of national crypto, which theoretically exists, but there is no indication of a smart contract or widespread use. The Marshall Islands also took an attempt to launch SOV crypto, but the official launch has been postponed indefinitely due to lack of feasibility. The situation may be different in Turkey as cryptocurrency is already hot among citizens during the bad times of national lira.