The Central Bank of Turkey prohibits the use of cryptocurrencies in payments as it carries significant risks for all parties. Among the risks of crypto assets, the financial institution stands out in a release They are not subject to any regulatory and supervisory mechanism, nor to a central regulatory authority. It also states that its market values are excessively volatile. “They can be used in illegal actions due to their anonymous structures and the wallets can be stolen or used illegally without the authorization of their holders,” he says. Finally, he argues that the transactions are irrevocable.
Turkey bans the use of cryptocurrencies
The highest financial institution in Turkey stresses that the factors mentioned above can cause irrecoverable losses for the parties executing the transactions, undermining the confidence in the methods and instruments currently used in payments. For all these issues, the Central Bank of Turkey has said that it bans cryptocurrencies.
The insurer Axa allows to pay with bitcoin invoices to its clients in Switzerland
According to Reuters, the ban comes days after the Turkish authorities demanded information about users who operate in cryptocurrency exchanges. Turkey thus joins the measures taken by China to prohibit the use of cryptocurrencies to make payments. In Russia also entered into force this year a new law that, among other issues, forced some officials of the country to sell their cryptocurrencies before April. India is another of the countries where its rulers have spent several months evaluating the possibility of passing a law that prohibits their possession.
A different monetary system
Last March, Alex Gladstein, strategy director of the Human Rights Foundation, highlighted on his Twitter profile that Turkey has one of the highest per capita uses of bitcoin in the world. “A growing number of Turks are peacefully choosing a different monetary system that their oppressors cannot control,” Gladstein wrote.
A nation of 82 million sees its currency crash 15% in a single day.
No coincidence that Turkey has some of the highest per-capita Bitcoin usage in the world.
A growing number of Turks are peacefully choosing a different monetary system that their oppressors can’t control. https://t.co/BD0bl7URic
— Alex Gladstein (@gladstein) March 21, 2021
According to the latest data from Statista, Turkey is the fourth country in the world where cryptocurrencies are used the most. The turkey inflation it is currently over 15%.
lol boomer. https://t.co/N8JAvG0Lqj turkey already had the one of the highest bitcoin adoptions years ago
— O (@O80925253) March 22, 2021
A new central bank president
The cryptocurrency ban in Turkey comes a month after Erdogan decided to remove Naci Agbal as the bank’s head. Agbal, who stayed only five months in the entity, was replaced by Sahap Kavcioglu, a former member of parliament for the ruling party. Agbal was fired from the post on March 20 from the post. He did so by thanking the “President of the Republic for all the functions he considered appropriate, including the Presidency of the Central Bank. I would like to express my gratitude for my dismissal starting today. May my Lord give the best to all of us, “he said on his Twitter account.
I would like to thank the President of the Republic for all the duties he deemed appropriate, including the Presidency of the Central Bank. I express my gratitude for my dismissal as of today. May my Lord grant the best for all of us.
– Naci AĞBAL (@naci_agbal) March 20, 2021
Photo by Samueles, on Pixabay
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