Turkey Increases its Crypto Use Despite Policies

  • Despite limiting policies, Turkey has increased its use of crypto assets.
  • Chainalysis ranked Turkey amongst the top 30 fastest-growing crypto nations.
  • Studies have observed that high inflation drives crypto usage in Turkey.

Turkey currently has one of the fastest-growing crypto markets in the world. But, locals are not relenting in their attempt to make Istanbul, the country’s capital, a hub for blockchain activities. Turkey’s interest in crypto goes beyond simple market trends.

There is a strong community of crypto enthusiasts comprising university clubs, Web3 startups, blockchain developers, researchers, and a sizeable number of cryptocurrency investors. The European nation hopes to accomplish more, having already held notable events like ETHIstanbul, Blockchain Economy Istanbul, and Istanbul Blockchain Week.

Like most countries around the world, Turkey’s crypto drive is sponsored by several economic factors, including a high inflation rate. Locals have turned to cryptocurrency as a better alternative to their currency. In addition, many locals prefer to own stablecoins due to their peg with the dollars.

Economist Erkan Öz noted that the crypto adoption in Turkey is yet to transition into blockchain startups due to the absence of appropriate policies. Erkan suggested that the European country establish a regulatory framework that supports and protects investors and blockchain assets.

Turkey ranked 12th in Chainalysis’ 2022 Global Crypto Adoption Index. This growth is despite the restrictions on the industry. Last year, President Recep Tayyip Erdoğan declared that “we are in a war against Bitcoin” and urged locals to save in the Lira and keep their funds in the bank.

Speaking on the crypto situation in Turkey, Chainalysis wrote,

In Turkey and Egypt, fluctuating cryptocurrency prices have coincided with rapid fiat (traditional) currency devaluations, strengthening the appeal of crypto for savings preservation.

Crypto supporters believe crypto is a perfect substitute for the Lira. Many locals have expressed their doubt about the government’s ability to revive the economy and curb inflation. Turkey’s national currency lost 44% of its value last year as a result of a currency crisis brought on by rate cuts. However, the Turkish lira has fallen about 30% this year to fresh record lows.

Turkey tops the MENA region as the largest recipient of cryptocurrency The country received about $192 billion worth of crypto from July 2021 to June 2022. However, there is a legal ambiguity surrounding cryptocurrencies in the country. In April last year, the government banned the use of crypto as payment for goods and services. However, trading is still authorized.

Lawrence Woriji
Lawrence Woriji Verified Author

I have covered some exciting stories in my career as a journalist and find blockchain-related stories very intriguing. I believe Web3 will change the world and want everyone to be a part of it.

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