- Turkey president says they are fighting a separate war against cryptocurrencies.
- Crypto adoption spikes among Turkey residents.
- War against crypto appears to be in favour of Digital Turkish Lira.
Turkey President Recep Tayyip Erdogan has said that the country is at war with cryptocurrencies.
Erdogan said this on Saturday during a meeting with students. He said Turkey does not have a problem of opening up to crypto money, on the contrary, they have a separate war and struggle against them.
“We will not give them such a premium, nor will we. Because we will continue on the road with our money, which is our fundamental identity in this matter, Erdogan said.
Turkey President’s statement does not come as a surprise as the country has been hostile against cryptocurrencies despite their wide adoption among residents.
Turkish central bank imposed a ban on cryptocurrency payments in mid-April, stopping local firms from conducting transactions with digital assets. They sighted regulatory uncertainly, extreme high volatility, and crime as key reasons behind their decision.
Turkey President, Turks and cryptocurrencies
Crypto adoption rate among Turks spiked incessantly in 2020, with data showing that the country had one of the highest exposures to cryptocurrencies worldwide.
Polls also indicated that about 16 percent of Turkish citizens had used or owned cryptocurrencies. The reason for the high volume was as a result of the dwindling value of the lira. Turkish citizens flocked to invest in bitcoin, eager to gain from the cryptocurrency’s bull run over the past year. While also hoping to protect themselves against inflation.
In the wake of wide adoption, the unregulated space began getting close watch from the government, and they floated a tax regime. They also announced collaborative work on crypto regulation with several local regulators.
In April, the government announced a legislation to ban the use of cryptocurrencies as payments for goods and services. The ban came to effect on April 30. However, despite the ban, investments in crypto are not considered illegal. Crypto exchanges in Turkey could still facilitate crypto trading.
Turkey President declaration of war against crypto is at a time when the Central Bank announced it would establish the ‘Digital Turkish Lira Collaboration Platform’ to facilitate the research and development of a CBDC.