The transition to digital currency has accelerated! Paper money is becoming a thing of the past
Finance expert İslam Memiş stated that the transition to digital currencies will accelerate, noting that paper money is expected to be largely phased out by 2030. He also pointed out that Turkey has begun issuing digital banking licenses and that the traditional banking model is starting to change.
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While carrying paper money has become difficult in Turkey due to high inflation, there has been a significant global increase in card-based spending as credit card usage has become more widespread.
Finance expert İslam Memiş clarified why new banknotes are not being printed despite inflation, emphasizing that the transition process to digital currencies will gain momentum.
According to the report in Türkiye Gazetesi, Memiş noted the following in his speech:
"THE TRANSITION PERIOD TO DIGITAL CURRENCIES MAY BE ACCELERATED"
There is a major transformation process taking place globally regarding digital currencies. Central banks have prepared their own digital currency projects, and the Central Bank of the Republic of Turkey (TCMB) has even successfully completed its third phase of testing. In the near future, the transition process to digital currencies will begin.
Particularly in the US, in line with the plans of Donald Trump and Elon Musk, the Federal Reserve (FED) may be dissolved and its workforce reduced. During these times, a process of discrediting the interest rate policies of central banks may occur, and ultimately, the influence of central banks globally may be reduced, potentially accelerating the transition period to digital currencies.
"PAPER MONEY IS BEING PHASED OUT"
The use of paper money is expected to largely end by 2030. For this reason, the fact that the value of the 200 TL banknote is not being increased in Turkey (for example, not printing 500 TL or 1000 TL banknotes) is an indicator of the transition to digital currency. Paper money is being phased out to prevent the informal economy, track the transfer of money, and ensure that everyone is dependent on digital systems.
The European Central Bank stopped the production of 500 Euro banknotes in 2019.
Now, it plans to end the production of 200 Euro banknotes in 2026.
In the US, the 100 dollar bill will remain the highest denomination banknote. Turkey may enter a similar process.
Instead of the 200 TL banknote, a maximum of 100 TL banknotes might be printed.
Digital banking licenses have been issued in Turkey, and the traditional banking model has begun to change."
