Turkey wages war on cryptocurrency

President Recep Tayyip Erdogan said at a meeting with students that the country was at war against cryptocurrency.

1. Turkey is waging war on cryptocurrency

Erdogan said that on Saturday at a meeting with students. He said Turkey does not intend to open its doors to cryptocurrency, on the contrary, it has its own war and is fighting against it.

“We will not offer them such a bonus. Because we will continue down the path with our own currency, that is our basic identity in this regard. “said Erdogan.

The Turkish President’s statement is not surprising given the country’s hostility towards cryptocurrencies, although these are widely accepted by the population.

The Turkish central bank imposed a ban on crypto payments in mid-April and prevented local companies from conducting transactions with digital assets. They see unsafe regulations, extreme volatility and crime as the main reasons for their decisions.

The Turkish President’s statement is not surprising given the country’s hostility towards cryptocurrency, although these are widely accepted by the population.

2. Despite the Turkish war on cryptocurrency, crypto adoption rates continue to rise

In April, the government announced a law banning the use of cryptocurrencies as a means of payment for goods and services. The ban took effect on April 30th. However, despite the ban, investments in cryptocurrencies are not considered illegal. Cryptocurrency exchanges in Turkey can continue to facilitate trading in cryptocurrencies.

The rate of crypto adoption among Turks is steadily increasing in 2020. Much data shows that the country has one of the highest cryptocurrency risks in the world.

Surveys also show that around 16% of Turkish citizens have used or owned cryptocurrency. The reason for this popularity lies in the falling value of the lira. Turkish citizens flocked to invest in Bitcoin to benefit from the bull run of the cryptocurrency last year. Meanwhile, many of them also hope to invest in cryptocurrency to isolate themselves from inflation.

According to widespread belief, the unregulated space has been scrutinized by the government and a tax system has been put in place. They also announced a collaboration with several local regulators on crypto regulation.

Turkish President Recep Tayyip Erdoğan shocked domestic and foreign investors after he sacked Naci Agbal, the governor of Turkey’s central bank. Agbal’s dismissal comes two days after the head of the central bank hiked interest rates to fight rising inflation.

Erdoğan then replaced Agbal with Sahap Kavcioglu, a bank professor, making Kavcioglu the third central banker in two years. However, the Turkish lira reacted negatively to Agbal’s sudden discharge, falling about 15%.

When the value of the lira fell, the Turks decided to turn to Bitcoin. Google searches for Bitcoin in Turkey soared, peaking at 100 before falling.

Meanwhile, the people of Turkey have always accepted Bitcoin as a better option to protect their money against the steady decline in the lira. As BTCManager reported in September 2020, Turkey ranks 29th in the Global Cryptocurrency Acceptance Index and at the same time ranks first in the Middle East.

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