Crypto Council For Innovation
No Result
View All Result
  • Home
  • About Us
    • Leadership
    • Advisors
    • The Alliance
  • Events
  • In the News
  • Analysis
    • Policy Briefs
    • Crypto in Action
    • Timeline: Crypto in 2022
    • Reports
    • Comment Letters
    • CCI News
    • Explainers
  • Contact
  • Careers
  • Home
  • About Us
    • Leadership
    • Advisors
    • The Alliance
  • Events
  • In the News
  • Analysis
    • Policy Briefs
    • Crypto in Action
    • Timeline: Crypto in 2022
    • Reports
    • Comment Letters
    • CCI News
    • Explainers
  • Contact
  • Careers
No Result
View All Result
Crypto Council For Innovation
No Result
View All Result
Home Crypto in Action

Turkey – Crypto Usage Continues to Rise in Face of Ban

byCCI
January 26, 2023
in Crypto in Action


Summary: 

  • Crypto usage has risen significantly as Turks try to manage inflation and sizeable volatility in the fiat currency, the lira.
  • Turkey’s government placed a partial ban on crypto usage, and yet, the number of crypto users continues to rise.
  • The population is young and interested in ‘borderless’ banking and investing, and for some, crypto represents freedom from government policy.
  • Check out more CCI resources and examples on the Crypto In Action collection page. 


Like many other countries, Turkey is turning to crypto in an attempt to ride out current global economic problems. The country is experiencing high inflation and currency depreciation, but on a grand scale. A study in June suggested that inflation is running in the triple digits, possibly as high as 160%, although the official rate at the time was reported as 79%. At the same time, the lira has fallen in value, registering a 40% fall against the dollar during 2021 and 26% this year. This has served to heavily erode the value of real wages.

With the lira’s value displaying such volatility, it comes as no surprise that crypto usage has grown. Again estimates vary, but it is reported that anywhere between 8 million and 14 million of the 84-million population have used cryptocurrencies. In March 2021, daily crypto transactions stood at more than one million, with users looking to earn, save and transfer hard currencies. In the last quarter of 2021, cryptocurrency trading volumes using the lira stood at an average of $1.8 billion per day.

And yet, Turkey is not the most fertile market for this development. In 2017, the country’s Directorate of Religious Affairs said that bitcoin and other cryptocurrencies were not permissible in Islam. April 2021 saw the collapse of two exchanges, Thodex and Vebitcoin, and the disappearance of Thodex’s owner. Following this, the central bank banned the use of cryptocurrencies to buy goods and services although trading was permitted.

Crypto’s growth in Turkey 

However, this doesn’t appear to have dulled interest in, or usage of, crypto, and a number of factors are feeding into the sector’s growth in Turkey. Economics is certainly one. Typically, the Turks have relied on foreign currency to protect their purchasing power, but even the dollar has proven inadequate in the face of such high inflation rates. The average salary has – despite hefty salary increases to try to counter the lira’s fluctuations and rising inflation – eroded to less than $300 per month.

Many are disillusioned with government policy, and don’t trust that the authorities can find a workable solution to the country’s current economic problems. In this respect, it helps that the median age in Turkey is 33; reports indicate the Millennial mindset is attuned to technology, more open to digital finance, and looking for alternatives to traditional banking.

It’s not just trading that is proving attractive; the number of crypto enterprises is growing rapidly, with crypto jobs offering payment in other currencies or stablecoins, as well as often a different way of working, free of the usual, more formal corporate constraints. For startups, crypto’s decentralized nature gives them access to global investors, making developing a company a possibility in an otherwise inhospitable economic climate.

Outlook

What crypto’s future looks like in large part depends on how the government regulates the industry. On one hand, regulation could be a boon. Globally, regulators are struggling to keep up with the rapidly developing crypto sector. On the other hand, if regulators either use a heavy hand or simply get the legislation wrong because they don’t understand the market and how it works, crypto’s development in Turkey could be hindered.

Currently, the president is taking a relatively benign approach, offering advice and suggesting that he wants Turkey to become a producer (rather than a consumer) in the digital assets world, although what this looks like is unclear.

Legislation is being drafted, reportedly designed to streamline registration for new crypto exchanges and possibly allow exchanges to buy and sell crypto directly in the fiat currency. To date, legislators appear to be working with the country’s crypto community as they develop new regulations.

Tags: Case Studycrypto in actionpolicyTurkey
ShareTweetShare

Related Posts

Brazil – Digital Literacy Paves the Way for Crypto Use
Crypto in Action

Brazil – Digital Literacy Paves the Way for Crypto Use

January 24, 2023
Crypto and Afghanistan – Financial Lifeline in the Midst of Crisis
Crypto in Action

Crypto and Afghanistan – Financial Lifeline in the Midst of Crisis

December 12, 2022
Crypto and Humanitarian Aid – Reducing Costs and Improving Speed
Crypto in Action

Crypto and Humanitarian Aid – Reducing Costs and Improving Speed

October 30, 2022
Crypto and Ukraine – Fundraising at Speed
Crypto in Action

Crypto and Ukraine – Fundraising at Speed

September 1, 2022
Load More
Next Post
Global Conference  (Jan 2023)

Global Conference
(Jan 2023)

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular News

  • US Crypto Policy Tracker

    US Crypto Policy Tracker

    0 shares
    Share 0 Tweet 0
  • Web3 developers at an all-time high and growing faster than ever

    0 shares
    Share 0 Tweet 0
  • The Longest Two Weeks in Crypto

    0 shares
    Share 0 Tweet 0
  • FSB’s Proposed Recommendations on Stablecoins and Cryptoassets

    0 shares
    Share 0 Tweet 0
  • 1 in 7 voters own crypto with support across party lines

    0 shares
    Share 0 Tweet 0

By Categories

  • CCI News
  • Comment Letter
  • Congressional Testimony
  • Crypto in Action
  • Data
  • Explainers
  • News Analysis
  • Pinned Event
  • Policy Brief
  • Press Releases
  • Previous Events
  • Recent Coverage
  • Report
  • Upcoming Events
  • About
  • Help
  • Feedback
  • Contact

© 2022 Crypto Council For Innovation

No Result
View All Result
  • Home
  • About Us
    • Leadership
    • Advisors
    • The Alliance
  • Events
  • In the News
  • Analysis
    • Policy Briefs
    • Crypto in Action
    • Timeline: Crypto in 2022
    • Reports
    • Comment Letters
    • CCI News
    • Explainers
  • Contact
  • Careers

© 2022 Crypto Council For Innovation