The Turkish central bank has banned the use of cryptocurrencies in payments, claiming that these carry significant risks due to volatile exchange rates.
The Turkish central bank has banned cryptocurrency payments
The bank said that cryptocurrencies “Are not subject to any regulatory or supervisory mechanisms or a central regulatory authority”. The official statement added that it had been released “Regulation on the non-use of cryptocurrencies in payments.”
The move comes after months of economic turmoil, which culminated in the resignation of the president of the central bank.
The announcement added that cryptocurrencies:
- they are not subject to any regulatory and supervisory mechanisms or a central regulatory authority,
- have market values that may be excessively volatile
- may be used in illegal activities due to their anonymous structure,
- can be stolen or used illegally without the consent of their owners.
The country’s central bank has struggled to control the fall in the lira in recent months and in yesterday’s statement announced that it had decided to keep interest rates at an exorbitant level of 19%.
The politicians are not improving the situation. President Erdogan’s decision to appoint a new bank chairman last month raised concerns among investors that Turkey would maintain a too loose monetary policy in the face of accelerating inflation and a weak lira.
Other countries have already banned the use of cryptocurrencies for payments, including Russia and China. The Middle Kingdom decided to do so in 2017.
How did the cryptocurrency community react to the case? Prominent investor Anthony Pompliano wrote that Bitcoin (BTC) “He was winning in the free market, so governments and central banks are trying to fake the rules of the game.”
– It does not matter. Adoption continues in these countries – added.
Entrepreneur Jeff Booth said that “There is no better signal that you need Bitcoin than the central banks are trying to ban it.” Added: “I bet adoption speeds up.”
Some experts and market observers have long speculated that attacks against cryptocurrencies will become more frequent in countries with “weaker” fiat currencies. It is not difficult to regard Turkey’s new decision as an act of desperation as the lira continues its downward trend.