Turkish President Erdogan Says Cryptocurrency Law Is On Its Way To Parliament

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Santa may be granting the wishes of Turkish bitcoin aficionados as Turkey undertakes a fundamental overhaul of its cryptocurrency policy.

This was revealed during a press conference by Turkish President Recep Tayyip Erdogan, who said he would attack the crypto industry by enacting legislation to promote their legal use in the country.

Turkey’s move is surprising because the country has not specifically been crypto-friendly in the past.

What the Turkish President says

The Turkish president underlined his interest in the subject of cryptocurrencies. He explained that his staff had a Crypto Bill ready to be sent to Congress for discussion as soon as possible.

We will take action on this issue by sending (the bill) to Parliament without delay. Turkey will take a leap forward with its new economic model. It is worth taking these risks.

The document is not yet public and the Turkish president has said nothing about it; nonetheless, one of the main elements of the bill seems to relate to the function of the central bank as the regulator of bitcoin transactions and their custody.

He added.”Citizens will know that their money is guaranteed by the central bank, which guarantees the country’s treasury ”

Pass

Reuters reported that Turkey’s central bank banned crypto payments in April. In September, Turkey’s deputy finance minister said asset class regulations would be introduced.

Moreover, while President Erdogan did not rule out changing the country’s attitude towards cryptocurrencies, he told a press conference that he did not aim to promote their acceptance. The wording of the ban was self-explanatory and even warned of irreversible consequences for anyone who chooses to use cryptocurrencies:

“Payment service providers will not be able to develop business models in such a way that crypto assets are used directly or indirectly in the provision of payment services and the issuance of electronic money. “

However, the flip side reveals an economic reality that could support Turkey’s new settlement. Despite government efforts to promote the use of the lira and restrict the adoption of cryptocurrencies and the dollar as a substitute for its fiat currency, Turks continue to exchange their lire for cryptocurrency on a daily basis.

Turkey has more than 16% of the world’s crypto users, according to CoinMarketCap, which places it in fourth place for the number of users. According to Reuters, the surge in trade began earlier in the year when the central bank chief was replaced, triggering the pound’s first collapse.

At the time of this writing, $ 1 was worth Lira 12.45. It was worth 7 Turkish Lira in March 2021.

What does that mean

While the acceptance of Bitcoin as legal tender or currency of payment is not mentioned, it opens the door to a potential sector of crypto-based banking.

This is especially important given the recent failures of two major cryptocurrency exchanges, Thodex and Vebitcoin.

Using a decentralized alternative to boost the economy may not be such a “surprising” concept after all, given the state of diplomatic relations with the United States.

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