Turkey is preparing to launch a tradable digital currency in the financial markets
Rahmi Aktaba, head of the Turkish Informatics Association, said that experts from the Central Bank and the Turkish Scientific and Technological Research Authority (TUBITAK) are working on launching an official digital currency, based on the value of the country's currency.
In an interview with "Anadolu Agency" and followed by "Economy News", Aktaba stated that the issuance of a digital currency based on the Turkish lira and having a tangible financial return with the possibility of trading and selling in regular money markets, is very important for the development of the Turkish digital economy.
He added, "Digital currencies and cryptocurrencies have great advantages that are not found in traditional currencies, in addition to the ability of these currencies to harmonize with digital technologies and the innovative structures that depend on them, which attracts investor interest."
He continued: “During the past months, there has been a significant increase in investments, or in conducting financial operations using digital currencies, especially Bitcoin and Ethereum. This increase coincides with the rapid digital transformations taking place in the world, which increases investor 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 digital currency 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.
He added, "In digital exchanges, there are no regulatory institutions similar to the Capital Markets Council and the Banking Regulation and Supervision Agency, as is the case in traditional stock exchanges. For this reason, there is no authority that people can resort to when implementing wrongly speculative transactions or when they fall prey to fraudulent transactions."
Aktaba pointed out the importance of the investor being able to make reliable investments for 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 in circulation, and analyze and create a portfolio.
He advised those who do not have sufficient 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.
He also pointed out that there is no integrated legislation anywhere in the world regarding cryptocurrencies or digital currencies, but work on drafting such legislation is underway in many countries.
Akatbe stressed that the legal status of cryptocurrencies is currently a subject of discussion in economic and legislative circles, especially with regard to the possession of cryptocurrencies an acceptable monetary value as a means of payment or as an asset.
And he added, "When looking at the solutions offered to legitimize the current cryptocurrencies, it is noticed that there is no physical basis behind many digital currencies, so they are not subject to regulation, as are the traditional currencies traded in the regular money markets (stock markets)."
He added, "Therefore, cryptocurrencies are open to all kinds of speculation and manipulation, and rapid and high changes in market values can be observed."
Aktaba explained that a regulation was prepared on dealing with cryptocurrencies in Turkey 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 Turkish Central Bank.
He noted that the experts are also working on creating a new digital currency exchange system that has a tangible physical basis.
He indicated that the transfer system currently being worked on is called "PICA", and it allows currencies that have a financial reward from using transfer techniques, and users to verify the validity of the transfer, and it also provides financial regulatory authorities with monitoring 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, and can be sold in regular money markets, participation with banks and coordination with regulatory bodies.