Turkish central bank will ban the use of cryptocurrencies in payments starting April 30, 2021. The move by Turkish Central Bank came a month after president Recep Erdogan replaced the governor and the appointment of Şahap Kavcıoğlu. The decision came after recent statements by the Central Bank and other authorities on the need for regulation of the cryptocurrency sector in Turkey. The decision comes after an increase in the use of cryptocurrencies by Turkish citizens, which probably occurred to protect their savings from rising inflation and the collapse of the Turkish currency
Central Bank among the reasons stated that cryptocurrencies “were not subject to any regulation and supervision mechanism or to a central regulator; they present excessive volatility; may be used in illegal actions; transactions are irrevocable and the wallets can be stolen or used unlawfully without the authorization of their holders “. In an official statement, the bank said it had issued what it called a “Regulation on the disuse of cryptocurrencies in payments”.
Kemal Kilicdaroglu, president of the Republican People’s Party (CHP), the main opposition to the government, heavily criticized the decision taken by the central bank. In a message on Twitter, Kilicdaroglu stressed that the Central Bank’s decision took place “in favor of darkness”, observing how now the institutions carry out their “follies” always at night. “Before making such decisions, we need to discuss with all the interested parties,” Kilicdaroglu stressed.
Just a few days ago, Royal Motors (which distributes automotive brands Rolls-Royce and Lotus in Turkey) was the first company in the country to declare that it would accept payments in cryptocurrencies. There are many giants who have already opened to bitcoin and crypto, Tesla, Apple, Amazon, Expedia, PayPal. All companies that could sell to Turkey via cryptocurrencies.
The Central Bank has struggled in recent months to control the fall of the Turkish Lira and has announced that it has decided to keep interest rates at a very high level of 19%. Ahval News reported that Erdogan’s decision to appoint a new bank governor last month raised concerns among investors that Turkey will keep monetary policy too accommodative, in the face of accelerating inflation and a weak lira.
