Competition for Facebooks Libra and Bitcoin: Digital Lira

  • The Turkish government plans to launch its digital currency, the Digital Lira, in 2020, with the aim of strengthening its economy.
  • The Turkish government’s announcement is part of a bigger strategy to simplify payments and apply blockchain technology in an effort to improve the economy.

At a time when the growth of Bitcoin and blockchain technology is once again at a high point, just as the data from Coinbase supports this hypothesis, Turkey continues to move towards greater adoption. Apparently, its adoption plans follow the growing global trend.

Adoption of digital assets and big plans for blockchain technology

Turkey has had a controversial 2019, in all areas. President Tayyip Erdogan faces growing opposition from his policies inside and outside the country. Meanwhile, Turkey’s plans to increase the application of blockchain technology to various national sectors. The strategy, explained in a recent Turkish government publication, would seek to mitigate the collapse of the Lira’s value (national currency of the Eurasian country).

CNF has already reported about the increased adoption of Bitcoin in countries in political or economic crisis. In these areas there would be a boom in the search for versatile payment alternatives to cope with the crisis. In that sense, Turkey’s strategy would include not only the launch of its own digital currency, issued by its central bank, but also the application of blockchain technology to improve the national transport system, the general administration of services and the import and export processes.

The central line would mean the lifting of a large blockchain structure, accompanied by a fast payment system, supported by the digital Lira. The digital Lira will begin to be implemented next year. In order to meet the objectives of the government, the project should be finished by the end of next year.

Increasing global trend in the adoption of digital assets

If the economic strategy established by Turkey, whose first step is the launch of the digital Lira, is fulfilled, it would be joining the list of countries that seek to implement their own cryptocurrency within their national economy. Along with Venezuela and its questioned Petro, also China has raised the international interest.

Recent announcements by President Xi Jinping have caused a kind of domino effect. Its impact, it seems, has become palpable inside the cryptomarket. Many analysts say so. Like Turkey, the digital Yuan is expected to be launched in 2020.

Although the adoption of the technology that supports Bitcoin is something positive for the industry. Questions have also arisen about the centralization of digital assets issued by a central bank. Many cryptocommunity members have expressed skepticism about the true nature of these digital assets.

It remains to be seen whether Turkey will achieve its goals and whether, by the time it has set its target, blockchain technology and the digital Lira will be an important part of the country’s economy.

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Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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