Turkey has been facing economic challenges with the sovereign currency declining rapidly in 2019. During these tumultuous times, cryptocurrency remains the only viable way to move money out from the effect of inflation.
The Eleventh Development Plan 2019-2023 in Turkey has proposed the formation of Blockchain-based central bank money. Reportedly, the Commission also planned to encourage the securitization of assets in the banks. After Venezuela, which has introduced a currency backed by its Oil reserve – ‘petro,’ this will be the first cryptocurrency backed by a Federal Central Bank.
Dovey Wan, Crypto-analyst and trader tweeted,
Turkish Central bank rushing into the CBDC [Central Bank Digital Currency] game …
The Country will also look to establish stronger Financial ties in Europe with monetary funds, international payments systems, and new tax systems. The country is advocating the digitalization of lease certificates, stock portfolios, and product deeds as well.
Reportedly, about than 18% of the Turkish citizens own cryptocurrencies. According to CoinLib, the volume of the influx of money from Turkey in cryptocurrencies is about 50% of that in the UK.
Moreover, apart from the economic power-houses like USD, EUR, YEN, YUAN and British Pound, Turkish Lira and South African Won were to only two other currencies in the top.
Hence, while the Government will try to push its cryptocurrency, it would not be any different than the Turkish Lira. The Venezuelan Government is facing a similar problem as the Government is trying to promote ‘petro’ adoption, the citizens are preferring Bitcoin, Bitcoin Cash [BCH], Dash and Litecoin [LTC] for making payments and investments.
Furthermore, the rising interest of cryptocurrencies in Turkey seems to have influenced the Government. However, if the citizens continue to hold cryptocurrencies, the Government will be forced to review their policies again.
Jan Dehn, the head of research at Ashmore, recently told the media that the Turkish President, Tayyip Erdogan has risked the economy into an economic collapse similar to those in Latin countries. The expert suggested nationalization of the private sector and Capital Control as the solution.
Do you think that Turkey will be able to regain Capital Control with the Central Bank cryptocurrency? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com