The popularity of cryptocurrencies in economically troubled Turkey has continued to rise, with the number of daily trades now exceeding a million, a report said. This surge in trades was attributed to the depreciation of the lira, which hit a new low against the USD on December 20th.
Cryptocurrency trading in inflation-ridden Turkey has risen to over a million a day for the first time since March, according to a Reuters report, citing Chainalysis and Kaiko data.
According to the reportThe return to over a million trades a day came at a time when Turkey’s fiat currency, the lira, has depreciated by almost 40% since September. Prior to the recent surge, cryptocurrency trades in Turkey had previously passed the one million a day mark after President Recep Tayyip Erdogan unexpectedly Dismissal of the central bank governor on March 22nd.
The dismissal of the then governor Naci Agbal sparked fears of inflation among the Turks and caused the lira to collapse by more than 10%. After a period of relative stability – which in turn led to lower cryptocurrency transactions – the daily trades rose again above the million mark after the recent collapse of the lira.
As shown by the last one DataThe lira fell briefly to a new low of 18.10 for every dollar on December 20, 2021. But after the government announced a bailout plan, the lira has rebounded to 12.50 at the time of writing.
Gold restrictions are a boon to crypto
The Reuters report suggested that the recent surge in cryptocurrency trading could be related to restrictions imposed during the year that made it difficult for Turks to convert the lira for gold. Bitcoin’s race to a new all-time high of more than USD 69,000 in November is also believed to have contributed to the rise in trades.
Regarding the cryptocurrencies preferred by Turks, the report said bitcoin and stablecoin USDT are the most commonly used coins. This is evidenced by data showing that the TRY /USDT Pair is one of the most traded pairs while using the fiat currency BTC is the 12th most traded.
Reports that Turks are increasingly switching to cryptocurrencies come a few months after the central bank banned the use of crypto assets when paying for goods and services. In addition, President Erdogan has said the country is at war with cryptocurrencies.
What is your opinion on this story? Let us know what you think in the comments below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Source: Crypto News Austria