At the beginning of September, a four-member delegation from the Deutsche Bundesbank headed by Dr Esther Wandel, Standing Deputy Director General Digital Euro, travelled to Istanbul. The aim of the trip was to deepen the dialogue between the Bundesbank, the Central Bank of the Republic of Türkiye (TCMB) and other stakeholders in central bank digital currencies (CBDCs). The event was organised by our representative in Istanbul, Sebastian Geiger, and was held with the support of other Bundesbank colleagues.

The two-day programme began with a financial sector reception at the German Consulate General in Istanbul attended by more than 50 invited guests. In her welcome speech, German Consul General Regine Grienberger highlighted the importance of Istanbul as a financial hub and the relevance of collaboration between the central banks of Türkiye and Germany. Prof. Huzeyfe Torun of the TCMB gave a brief outline of the history and significance of payment media and pointed to the potential of CBDCs. Dr Esther Wandel likewise stressed the importance of CBDCs for digital transformation and the important role central banks can play.

An internal workshop between the two central banks was held on the following day. In this context, various aspects of CBDCs, especially of the digital euro and the digital lira, were intensively discussed in a trusted group setting. In a total of four segments, both technical and economic aspects of CBDCs were examined. The first meeting focused on the objectives, benefits and risks of CBDCs in Germany and Türkiye. Progress on the development of the digital euro and digital lira was presented and questions on collaboration with the private sector were discussed. The second meeting was on the interoperability of payment systems, cross-border payments and the integration of CBDCs into existing infrastructures. Other meetings addressed issues of public communication, technical challenges and possible implications for financial stability. The Bundesbank also stressed that new technologies offer potential for existing interbank transactions (wholesale CBDC).

Through intensive exchange with our colleagues from the central bank of Türkiye, we have gained valuable insights for our own work, Dr Esther Wandel said. We have learnt that the challenges facing our colleagues at TCMB are, in some cases, similar to those we face in the Eurosystem. For example, we must both tackle the task of developing a state-of-the-art technical infrastructure and appropriate measures to safeguard financial stability.

The exchange with the TCMB is to continue in the coming years in order to further deepen collaboration and identify new areas of cooperation.