Santa Claus could grant the wishes of Turkish cryptocurrency lovers as Turkey embarks on a radical change in its crypto policy.
Turkey’s President Recep TAYYIP Erdogan stated today at a press conference, that he expects the nation to take a big step forward with a new economic model. As a first step, he will touch the crypto industry through a law to encourage their legal use in Turkey.
Turkey President Talks about a New Economic Model
The President and Prime Minister of Turkey expressed their interest in cryptocurrencies. He explained that his staff has a Crypto Bill ready to be sent to the Congress for discussion as soon as possible.
” We will move quickly to resolve this issue by submitting (the bill) immediately to Parliament. With its new economic model, Turkey will take a big step forward. It is worth taking these risks.”
The draft is not yet available and Turkey’s President did not give any further details about its contents. However, one of the key points of the bill appears to be focused upon the central bank’s role as the regulator for cryptocurrency transactions.
“Citizens will know that their money is guaranteed by the central bank, the guarantor of the country’s treasury”
In short, even though there’s no mention of Bitcoin being legal tender or a payment currency, this opens up the possibility of a new industry of crypto-powered banking services.
This is of particular importance in light of the recent collapse of two major cryptocurrency exchanges: Thodex and Vebitcoin
A (Not So) Surprising Cryptocurrency Bill
Turkey’s decision is surprising, as Turkey has never been crypto-friendly.
As recently as September 2021, President Erdogan himself commented at a press conference that even though he did not rule out softening the country’s stance on cryptocurrencies, he did not actually intend to promote their adoption.
These comments are quite in line with the stance of the Central Bank of Turkey, which announced a measure to ban the use of cryptocurrencies as a means of payment for the purchase of goods in April this year. The ban text was clear, and warned that anyone who took the risk of using cryptocurrencies would be subject to irrevocable damage:
“Payment service providers will not be able to develop business models in a way that crypto assets are used directly or indirectly in the provision of payment services and electronic money issuance.”
The flip side of this coin shows an economic reality which could justify the Turkish government’s change in stache. The country’s fiat currency suffered the worst devaluation in its history. Despite the efforts of the government to promote the use and limit the adoption of dollars and to use cryptocurrencies as a proxy for the U.S. fiat currencies, Turks continue to convert their liras to crypto more and more every single day.
Given that diplomatic relations with America are not at their best it might not seem so surprising to use a decentralized alternative for improving the economy.