Digital transformation of central banking and payment systems in Türkiye: An economic and legal examination

Digitalization is defined as the integration of information and communication technologies with economic, social, and institutional structures, which has brought about a significant transformation in the traditional roles of central banks. This study examines the multidimensional impacts of the transformation of the Central Bank of the Republic of Türkiye within the context of the development of the digital payment infrastructure in Türkiye. The study examines the roles of the Central Bank of the Republic of Türkiye as a founder, operator and supervisor. The study aims to test the hypothesis that digitalization enhances the effectiveness of payment systems, the operational role of central banking and institutional capacity. A qualitative method based on document scanning was adopted to examine the multi-layered and dynamic phenomenon of digitalization in more detail and contextually. Qualitative Content Analysis has been adopted as the basic method to carry out this holistic and systematic analysis. The methodological framework is theoretically supported. The Instant and Continuous Fund Transfer System implemented by the Central Bank of the Republic of Türkiye, as well as issues such as Digital Turkish Lira studies, are detailed to reveal the impact of digitalization on Türkiye's payment systems. Administrative elements such as sharing the Digital Turkish Lira pilot studies with the public and increasing institutional transparency have brought about a multidimensional transformation of the Central Bank of the Republic of Türkiye, not only in terms of technical but also economic stability, financial inclusion, and institutional effectiveness. These effects have been supported by concrete data through tables, and findings have been obtained that the welfare effect of the digital payment ecosystem in Türkiye has markedly increased as of 2024. Within the scope of the literature review, not only national but also international sources were utilized; a comparative analytical framework was established by examining studies conducted in selected countries. The approaches of the European Central Bank, the United States Federal Reserve and the Central Bank of the Republic of Türkiye to digital transformation are discussed comparatively. As a result of the analysis, it was seen that the Central Bank of the Republic of Türkiye stands out with its rapid adaptation ability in compliance processes and technical applications, has implemented innovative systems such as the 24/7 Instant and Continuous Transfer of Funds System infrastructure, and has drawn the profile of a central bank that implements digital financial technologies. The sharing of digital Turkish Lira pilot studies with the public, the publication of guides on user experience and the increase in corporate transparency elements reveal the Turkish Central Bank's managerial transformation as well as its technical one. In conclusion, when the digitalization process is evaluated in the context of the Central Bank of the Republic of Türkiye, it has brought about a multidimensional transformation that increases the effectiveness of payment systems, strengthens the Bank's operational role and expands its institutional capacity.