Turkey Sees Cryptocurrency Transactions Surge Amid Lira Devaluation
The daily volume of cryptocurrency transactions in Turkey has risen beyond one million, as the country’s legal tender (lira) has recorded a succession of historic lows, according to Reuters. Turkey’s currency has fallen about 40% against the dollar since September, prompting Turks to seek safe havens for their money in order to escape the impact of skyrocketing inflation.
The one million-a-day mark was first breached earlier this year, when the country’s central bank president was abruptly replaced in March, precipitating the lira’s first significant decline of 2021. However, the volume of transactions had fallen below 500,000 prior to the last episode of currency volatility reigniting interest.
Turks often exchange lira for dollars or gold, since the currency has lost 90 percent of its value in the last 13 years. However, with Ankara attempting to make such operations more difficult and bitcoin values surging in 2021, cryptocurrency trading has grown in prominence. Additionally, the data revealed that bitcoin and Tether, a “stablecoin” that maintains a constant value and is extensively used in cryptocurrency trading, have become the most preferred currencies for lira transactions since 2019.
In November, bitcoin reached an all – time of $69,000. A notion that the currency’s restricted supply renders it resilient to inflation – notwithstanding the volatility, the cryptocurrency is frequently witnessed as a store of value – has aided in fueling its growth. Nevertheless, the growth of cryptocurrency trading in Turkey has attracted the interest of officials.
Turkey’s deputy finance minister announced in September the introduction of legislation governing the burgeoning asset class. Nevertheless, the country’s central bank outlawed the use of cryptocurrency for conventional forms of payment in April, pointing “irreversible” harm and trade difficulties.