Payment methods in foreign trade transactions: A research on Digital Turkish Lira

In the 21st century, as globalization has accelerated, foreign trade transactions have undergone significant transformation in both volume and diversity. Alongside this transformation, payment methods have evolved in line with technological advancements, with innovative tools like digital currencies gaining prominence in foreign trade. The digital Turkish lira, being developed by the Central Bank of the Republic of Türkiye, stands out as a notable innovation in this transformation process. This study examines the structure and functioning of traditional payment methods used in foreign trade in detail, highlighting their advantages and disadvantages in terms of security, cost, speed, and risk balance among parties. Subsequently, a general framework for digital currency technologies and central bank digital currencies (CBDCs) is outlined, with case studies from various countries evaluated. The potential role of the digital Turkish lira in foreign trade payments, its impacts, systemic requirements, and application areas are analyzed from both theoretical and practical perspectives. Additionally, the opportunities offered by the digital Turkish lira to foreign trade actors, as well as its potential limitations, are assessed. The findings suggest that the use of digital currencies in foreign trade is likely to become more widespread in the coming period, emphasizing the importance of Türkiye's infrastructure preparations and strategic planning in this field. The study concludes that for the digital Turkish lira to play an effective role in foreign trade payments, regulatory frameworks, technological infrastructure, and trust-building among parties are critical priorities.