As Turkey embarks on a radical change in its cryptocurrency policy, Santa Claus may be granted the wishes of Turkish cryptocurrency lovers.
Today, Turkey’s President Recep Takyip Erdogan stated in a press conference, that he expects the nation to take a big step forward with a new economic model. He also said that as a first step, the law would be made to encourage legal use of crypto currencies in Turkey.
Turkey President talks about a new economic model
Turkey’s President highlighted his interest in cryptocurrency. He stated that his staff had a Crypto Bill in hand and ready to send to Congress for consideration as soon as possible.
“We will move quickly to resolve this issue by submitting (the bill) to the Parliament immediately. With its new economic model, Turkey will take a big step forward. These risks are worth it.
Although the draft is not yet available publicly, Turkey’s president has not provided further information about its contents. However, one of the key points of the bill appears to be focused upon the central bank’s role as the regulatory body for crypto transactions.
“Citizens will be able to know that their money’s security is assured by the central bank, which is the guarantor for the country’s Treasury”
This means that although Bitcoin is not mentioned as a legal tender or payment currency in the article, it opens up the possibility of a new industry of crypto-powered banking services.
This is especially important in light of recent collapses of Vebitcoin and Thodex, two major cryptocurrency exchanges.
(Not So) Surprising Cryptocurrency Bill
Surprise! Turkey has never been crypto-friendly.
Erdogan stated at a recent press conference in September 2021 that he had not ruled out softening his country’s position on cryptocurrency, but he didn’t intend to encourage their adoption.
These remarks are in keeping with the position of the Central Bank of Turkey which announced in April a ban on cryptocurrencies being used as payment for goods purchases. The ban’s text was clear, and warned against irrevocable damage for anyone who tries to use cryptocurrencies.
“Payment service providers won’t be able develop business models in such a manner that crypto assets are directly or indirectly used in the provision payment services and electronic money issuing.”
The flip side of the coin reveals an economic reality that could justify the Turkish government’s change in stache. The country’s fiat currency suffered one of its worst devaluations in history. Despite the efforts of the government to promote the use and limit the adoption of dollars and the use cryptocurrencies as a proxy currency for the U.S. fiat currencies, Turks continue to convert their liras to crypto more frequently each day.
Given the poor diplomatic relations with the U.S., it might not seem so surprising to use a decentralized alternative for improving the economy.
Marla Brooks – Financial Analysis
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