Central Bank (CBRT) Governor Hafize Gaye Erkan said, “The ultimate power of digital money comes not only from the fact that it is digital money, but also from the fact that it is a monetary technology issued by the central bank.”
CBRT hosted the Central Banks Forum meeting of the Organization of Islamic Cooperation (OIC)-Economic and Commercial Cooperation Standing Committee (COMCEC) held in Istanbul on 24-25 September.
The opening of the meeting was made by CBRT President Erkan. In the first session of the meeting, the global economic outlook and the economic outlook of the OIC member countries were discussed.
In the second session, the latest developments in the design and use of central bank digital currencies were evaluated and the role of inter-central bank cooperation in this regard was emphasized.
In the third session, the increasing importance of trade in local currencies at the global level was discussed. Additionally, the benefits and challenges of trading with local currencies, especially in emerging market economies, were evaluated, as well as ways to improve trade with local currencies.
According to the information obtained by the AA correspondent, Erkan, speaking at the opening of the OIC-COMCEC Central Banks Forum meeting, which was held closed to the press, stated that she wanted to wish God’s mercy to those who lost their lives in the disasters in Morocco and Libya this month and a speedy recovery to those who were injured. “I extend my sincere condolences to all Moroccans and Libyans. We also experienced two major earthquakes earlier this year and thank you all for your support and prayers during that difficult period.”
Erkan emphasized that the world has moved from a decades-long period of oversupply, low interest rates and low inflation to a period of supply chain constraints, persistent inflation and, most importantly, increased risk of geopolitical instability and resource nationalism regarding critical raw materials and base metals.
Erkan stated that the second issue he listed represents one of the additional reasons for the high level of prices. She stated that such scarce global resources should be handled through global optimization and coordination in policy making, as in the OIC, and that, as central banks, they have an important duty in solving these problems.
Central Bank Digital Currency
Hafize Gaye Erkan, in her speech, also noted the following about MBDP:
“The initiatives of developed country central banks are about to reach a certain maturity, and we are at a critical turning point where the role of BIS and OIC cooperation are key in creating safe and durable CBT systems. There are examples of countries developing their own digital currency technologies. The ultimate power of digital money comes not just from being a digital currency, but from being a central bank-issued monetary technology. Without interoperability and high-performance payment processing systems, no MBDP project can deliver efficient and effective global transfer for inclusive, greener trade and investment.”
Erkan emphasized that cooperation in the Organization of Islamic Cooperation is of key importance in terms of testing interoperability and facilitating cross-border MBDP transactions regarding trade and remittances. “In this respect, global operation is important. Optimization should be done not only for a country, but also for each company or user.”
Source: Trthaber / Prepared by Irem Yildiz