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October 5, 2022
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Why Turkey will not adopt Bitcoin as legal tender

With El Salvador President Nayib Bukele meeting with Turkish President Recep Erdogan has made crypto enthusiasts dream, but they will only be left with dreams

Nayib Bukele is now considered a Bitcoin ambassador, being the first head of state to boast of having put Bitcoin in the country’s vaults and constantly in the lives of its inhabitants.

In a nation in crisis like Turkey, with the Turkish lira being worth less and less and the people of Ankara now devoting themselves more to Bitcoin and Tether than to the local currency, in the collective imagination, Bukele should have illustrated to Erdogan the advantages of Bitcoin. as a legal tender, even in Turkey.

If so, it was left out of official narratives. The narrative that emerged from the tweets of both is of exchanges of courtesy, announcements of cooperation agreements, for example, related to space and satellite systems. Bitcoin, at least officially, was not discussed. After all, Turkey is unlikely to go the way of El Salvador.

One thing has nothing to do with the other.

Recep Erdogan is not Nayib Bukele and Turkey is not El Salvador. Turkey has a currency in deep crisis, the Turkish lira, which President Erdogan is defending as best he can. Bitcoin becoming legal tender is not the solution to the Turkish lira crisis.

As reported by ReutersIn recent days, the Turkish president has appealed to citizens to convert their foreign money into Turkish lira. In fact, the government created incentives for Turks to return to the attractiveness of their currency by converting it back into dollar deposits. This is working.

In short, Erdogan has no intention of adopting a currency other than the lira. Certainly not the US dollar, let alone cryptocurrencies, which are in fact banned as a payment system in Turkey. Although trading is allowed.

Cryptocurrency trading in Turkey

Just as the Turkish lira was sinking, the Turks were taking refuge in cryptocurrencies and especially Bitcoin and Tether. According to several experts, cryptocurrency trading volumes in Turkey are expected to grow even further.

Erdogan has already announced that he will regulate cryptocurrencies, if only to avoid a new scandal like what happened with the Thodex exchange.

But he has no intention of following El Salvador’s example, not least because the strategy of adding Bitcoin to state reserves is not rewarding President Bukele. Despite the variousbuy the fall”, recent drops have caused the value of purchased BTC to decrease, for an estimated loss of around $25 million, not a small amount in a population of 6 million.

This is another factor that does not make Turkey inclined to go the way of El Salvador.

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