Political leaders from Turkey are reportedly looking at launching a national cryptocurrency in the country. According to a recent report the deputy chair of Turkey's Nationalist Movement Party and the country's former Industry Minister, has drafted a report to propose the development of a state-backed cryptocurrency. Though the technical specifics remain unclear at this time, the lawmaker stated that this crypto currency would aim to tokenize asset-backed securities for the issuance, which he argued would yield lower risks than the existing cryptocurrencies.

The report stated that such an asset basket would comprise of large public companies in the country's wealth fund such as of Turkish Airlines, the Istanbul Stock Exchange and Turk Telekom.

It was also stated that a clearer regulations were required for cryptocurrencies in an effort to monitor and control the cryptocurrency market as without proper regulations and a legal framework over cryptocurrencies could be used for illicit applications. It is also said that with the introduction of encouraging regulations after assessing all kinds of risks would enable the country to generate revenues from the cryptocurrency market, especially from cryptocurrencies such as bitcoin.

While on the other hand the other hand, Turkey’s Directorate of Religious Affairs stated that the cryptocurrency and more particularly bitcoin were being frequently used for illegal activities, and is currently not regulated enough, making them a lot more volatile than normal currencies. It has also stated that buying and selling virtual currencies is not compatible with religion at this time, due to the fact that their valuation is open to speculation, they can be easily used in illegal activities like money laundering. Moreover as these cryptocurrencies were also not under the state’s audit and surveillance.

Though according to the recent news implies that Turkey is going to implement a unique cryptocurrency project. Nevertheless, the country has not yet prepared a legal framework for cryptocurrencies. It is also said that the government has already formed a working group which would focus on this issue. The government also admits the huge potential of blockchain to the country for digitalization and believes that blockchain can impact and revolutionize many sectors. It was also mentioned that cryptocurrencies are still beyond the legal boundaries in Turkey and thus the working group is just exploring them. The reports currently indicate that Turkey’s public finances and banking systems are quite stable and not subject to any shocks. Therefore, they would be able to survive reforming.