The digital lira can shape Türkiye's economic future!

Evaluating the potential effects of digital currency on the Turkish economy, Prof. Burhan Pektaş, Head of the Department of Computer Engineering stated that "Türkiye should promote the digital lira, which can be an important component of the digital economy strategy."

Prof. Burhan Pektaş stated that "Digital currency can facilitate cross-border transactions by integrating Türkiye more closely with global digital economies."

Üsküdar University Faculty of Engineering and Natural Sciences Computer Engineering Department Head Prof. Burhan Pektaş evaluated the advantages and disadvantages of the transition to digital money and its potential effects on the country's economy.

What are the advantages of digital money?

Stating that digital money is a new application that has rapidly entered our lives, Prof. Burhan Pektaş emphasized that there are significant advantages and some risks in the transition of businesses to digital payment systems.

Prof. Burhan Pektaş listed the advantages of switching to digital money as follows:

"Digital money allows for easy, fast, and contactless transactions and enhances the user experience. Reduces costs associated with physical cash, such as printing, distribution, and handling. Moreover, digital transactions can be tracked; therefore, it can reduce fraud, money laundering, and other illegal activities. It provides access to financial services to people who do not have a bank account or who have insufficient bank accounts through mobile phones and Internet access. It speeds up transactions, reduces settlement times and can increase overall economic productivity."

The elderly population or those who do not have access to digital devices may find it difficult to adapt

Informing about the disadvantages of switching to digital money, Prof. Burhan Pektaş continued his remarks as follows: "Digital currency transactions can be tracked, which raises concerns about data privacy and surveillance. Hacking targeting digital wallets and payment systems leads to an increased risk of digital theft and cyberattacks. It requires a robust digital infrastructure that may not be available or reliable in all regions. Moreover, interruptions in Internet access, power outages, or system failures can stop operations. The older population or those who do not have access to digital devices may find it difficult to adjust."

The effects of the use of digital currencies...

Pointing out the effects of the use of digital money, Prof. Burhan Pektaş stated that "With the increase in e-commerce and the decrease in cash processing costs, it can reshape the way businesses work. Central banks may have more control over the money supply, which can make it easier to implement monetary policy. As digital wallets and fintech solutions come to the fore, it can lead to a reduction in reliance on traditional banking services."

What are the security risks of digital money?

Stating that "Digital money has security risks in many different ways such as cyber attacks, data breaches, fraud, and technical security vulnerabilities," Prof. Burhan Pektaş continued his remarks as follows:

"We can summarize them as follows. Digital payment systems and wallets are vulnerable to hacking, phishing, and malware attacks. Personal and financial data can be compromised, which can lead to identity theft and financial losses. It leads to an increased risk of unauthorized transactions and fraudulent use of digital currencies. Errors and flaws in the software of digital platforms can be exploited by malicious people. There are some precautions that businesses can take against these situations. We can briefly list them as follows: implementing strong encryption, multi-factor authentication, and regular security updates. Educating staff to recognize phishing attempts and other common cyber threats. Conduct security audits and risk assessments on a regular basis to identify and mitigate vulnerabilities. To use secure data storage solutions and to ensure compliance with data protection regulations. Also, businesses may want to consider taking out cyber insurance to protect against potential financial losses that may arise from cyber incidents."

What are the potential effects of digital currency on the Turkish economy?

Prof. Burhan Pektaş also evaluated the potential effects of digital money on the Turkish economy as follows:

"Digital currency can increase economic inclusion by providing financial access to underserved areas in Türkiye. It facilitates online transactions, and it potentially boosts e-commerce and digital businesses. Digital transactions are easier to track, which can reduce the size of the informal economy and increase tax revenues. The Central Bank of Türkiye could have more precise control over the money supply and improve economic stability. A national digital currency could help stabilize the Turkish lira by reducing reliance on foreign digital currencies."

How can the use of digital currencies develop in Türkiye?

Pointing to the predictions on this subject, Prof. Burhan Pektaş concluded his remarks as follows: "Türkiye should promote the digital lira, which can be an important component of the digital economy strategy. As digital infrastructure improves and smartphone penetration increases, more businesses and consumers are likely to adopt digital payments. The financial technology (fintech) sector can be expected to expand by offering more innovative financial solutions tailored to digital money. More comprehensive regulations around digital currencies and payment systems can be expected to ensure security, consumer protection, and financial stability. Digital currency can facilitate cross-border transactions by integrating Türkiye more closely with global digital economies."

 

Üsküdar News Agency (ÜNA)