Turkey Will Join Cryptocurrency Production Hype

Turkey will join cryptocurrency production hype. Turkey is working to produce its own cryptocurrency.

According to the news of Nurya Yardimci from TRT, Turkey is preparing to produce its own cryptocurrency. After countries such as China, Russia, Canada and Switzerland, Turkey will also be among the countries that produces its own cryptocurrency. Especially after the records broken by Bitcoin (BTC), the leading unit of the crypto market, the interest in cryptocurrencies is increasing. Parallel to this increase in interest, Turkey focused on the subject. CBRT President Naci Ağbal stated that they will start the cryptocurrency study. While experts were recruited for the project, the program prepared by the Ministry of Treasury and Finance, Strategy and Budget Directorate was approved by President Erdogan. TUBITAK and CBRT will be the two institutions to manage the project. Nurya Yardimci met with Prof. Dr. Haldun Soydal, Head of the Department of Economics at Selcuk University, to get information about the stage at which Turkey is in cryptocurrency production.   At What Stage is the CBRT's Work? Soydal answers this question as follows: "Turkey did not remain indifferent to cryptocurrencies, which are also used in shopping and commerce today. The Central Bank has started a study on this issue. In December 2020, Central Bank Governor Naci Ağbal announced that, from the second half of 2021, tests will begin with cryptocurrency. If this currency starts to be used in international trade, a radical change awaits Turkey. Why is that? Because the most important uncertainty in cryptocurrency at the moment is that there is no official addressee, and the reliability is discussed at some point. Even virtual checks, cards, credit cards have reached a large volume and the use of cash has decreased. Financial technologies and investments have increased a lot. People do not hold paper money, we make fast transactions in a short time, we can handle them with credit cards and debit cards. As the use of digital currency increases, as the Central Banks make it officially unique to them, the size of the business will change and even the printing of paper money will disappear in the future.”   When Can Turkey Use the Cryptocurrency Produced? At this point, Soydal says the following: “We see that the defense industry in Turkey has come a long way in recent years. This is the spirit of the times. Turkey cannot miss the trend and the opportunity here. There are significant investments made for this. TUBITAK has important works for this, and software developers are being trained for this. These are extremely important. The Central Bank will perform digital wallet and transfer transactions with blockchain technology. In this way, it is aimed to record the transactions made with digital currencies. The Ministry of Commerce also took over. Software developers were hired for this. It is currently being worked on. The studies are in the test phase, and it is known that pilot applications will be started in the second quarter. The name of the local cryptocurrency is not yet known. If the tests are successful towards the end of 2021, we can say that the digital money produced by Turkey will be put into use around 2022 or 2023.”   Everything May Change “Do digital currencies provide stability in the economy?” Responding to the question, Soydal said: “In the past, terrestrial terminology in the military sense made way to cyber and economic wars. These coins are important for economic security and wars. We see that the Central Bank is a pioneer with the cryptocurrency move it has made in this regard. The fact that cryptocurrencies are officially extracted by Central Banks using blockchain technology and used in international trade means that everything changes from beginning to end. The disappearance of the reserve money feature of the dollar is a window to a completely different world. At the same time, it is also important from this point of view that it is used as a derivative instrument in terms of the financial market and thus will find a serious response in the derivatives markets. We will see that the power of cryptocurrencies will increase even more in the coming periods.”   Can the US Dollar Resist Digital Coins? "How will the dollar resist against digital currencies?" Soydal answers the question as follows: “The US dollar has been the world's reserve currency since 1944. The dollar is used both in the financial system, in global markets and in foreign trade. While many figures of even Turkey are being announced, we evaluate them in dollars. Including gross national product. The general functioning of the derivative markets is on the dollar, and this is the reserve currency feature. The center of this reserve money is the FED. So, will bitcoin change this paradigm in the short term? It is difficult to say yes to this in the short term . As the world's economies grow, the balances change and the cards are shuffled again, the current dominance of the US dollar over the reserve money is moving to a point of questionable and changeable state. It is also important in digitalization and change. The system is changing with digitalization and electronicization. Virtual commerce, internet usage, easy access. Cryptocurrency is predicted to replace the US dollar as a reserve in the next 10 years or more.”       Source: TRT News