The Primal Depository financial institution of the Republic of Turkey (CBRT) has made a major step forwards with a research and evolution project that could see the Turkish lira go digital.

On Wednesday, CBRT appear the signing of memoranda of understanding with iii domestic research and engineering companies that will form the "Digital Turkish Lira Collaboration Platform." The puddle of participants is expected to expand every bit the project moves forward.

The iii original engineering stakeholders are Aselsan, a major defence force corporation, Havelsan, a software and systems developer operating in the defense and Information technology sectors, and TÜBİTAK Information science and Information Security Inquiry Center.

Project participants volition help CBRT in developing and testing the prototype digital lira network. While the declaration does not clarify the technological infrastructure underlying the project, it mentions the possibility that information technology volition cover "blockchain technology, the use of distributed ledgers in payment systems, and integration with instant payment systems" on a later stage.

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Similar to the digital euro initiative, the digital lira project doesn't brand a commitment to the ultimate digitization of Turkey's currency, as the document emphasizes that "The CBRT has made no last determination regarding the issuance of the digital Turkish lira."

The results of the tests are expected erstwhile in 2022, after which CBRT will determine whether the technology meets the standards required for further implementation.

Earlier in the summer, the Turkish fundamental bank banned cryptocurrency payments and limited the range of fiscal services bachelor to crypto businesses. The bill designed to establish regulatory clarity around digital assets all the same awaits a parliamentary vote.