Speaking with economists and business leaders, Turkish President Recep Tayyip Erdogan said a bill is pending to better regulate cryptocurrencies.
Ready for Parliament
ABC Newspaper writes that the crypto law according to Erdogan be sent to the Turkish parliament unchanged.
In July, former deputy finance minister Sakir Ercan Gul, who was fired by the president earlier this month, told local media that Turkish regulations would resemble those being implemented in the US and Western European countries.
The cryptocurrency law will define different types of digital assets and introduce measures to better protect investors.
Not fond of crypto
Turkey has had a turbulent year, not even talking about the volatile lira. Turkey’s central bank shared a decree in April banning the use of cryptocurrencies as a means of payment.
In September, Erdogan said Turkey was at war with crypto. For a while it seemed as if the bitcoin price fell because of these words, but it turned out to be nothing more than a storm in a teacup. These words were then used derisively by the crypto community as the Turkish lira collapsed like a pudding.
Turkish Lira more volatile than crypto
The troubled Turkish fiat currency plunged to a record low against the US dollar and the euro on December 20, losing more than 60% of its value since the beginning of that day.
Erdogan strongly believes that inflation should not be fought with higher interest rates. That same week, the president shared a settlement in which the Treasury and the central bank would reimburse losses on converted lira deposits against foreign exchange, sparking the largest intraday rally ever.
Off the dollar
The Turkish currency rose more than 20% that day. Unheard of (except in crypto of course). The plan was to become less dependent on the dollar, and the Turks took their word for it by converting $900 million in USD into lira, said Treasury Secretary Nureddin Nebati.
The lira received a significant boost from what traders and economists called backdoor dollar sales by state banks, backed by the central bank.
The immense volatility that the lira has to deal with is causing more and more Turks to discover cryptocurrency.
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