Crypto News

The crypto trading volume in Turkey is increasing as the local currency collapses

                                                            Der Meilenstein von Millionen Trades pro Tag wurde von den Blockchain-Analysefirmen Chainalysis und Kaiko aufgezeichnet.  Die zügellose Inflation und eine Währungsabwertung um fast 40 % seit September haben dazu geführt, dass die Bürger zu Crypto-Assets strömen, um ihre schwindenden Ersparnisse zu bewahren.

According to Reuters, trading began to surge earlier in the year when the central bank chief was replaced, triggering the lira’s first plunge.

Turks are turning to crypto

Turks are increasingly converting lira into USD or gold as the currency has lost 90% of its value since 2008. Decentralized crypto assets are now another option to protect people from economic turmoil. Bitcoin and Tether have been the most popular trades against the lira over the past three years.

At the time of writing, $ 1 was worth 12.37 lira and at the beginning of the year it was 7.37 lira. The currency plummeted to 18 lira against the dollar on December 20.

According to CoinMarketCap, more than 16% of global crypto users came from Turkey, which ranked fourth for most users.

Crypto in Turkey 🇹🇷 is it a nightmare😳

Over 16% of crypto users worldwide came from Turkey.
Turkey ranked fourth for most users.

– CoinMarketCap (@CoinMarketCap) December 21, 2021

However, a number of Turkish crypto traders responded that the video was misleading as crypto trading is not banned in the country, the exchanges are still operational and the withdrawal is easy.

Reuters reported that the central bank banned crypto for payments back in April. In September, the Turkish Deputy Finance Minister announced that regulations would be introduced for the asset class.

Doubtful rescue package

On December 21, the Wall Street Journal reported that President Recep Tayyip Erdogan had announced a bailout plan to encourage Turks to reinvest their money in the failing currency. This has led to a slight appreciation of the lira, but it has still lost half of its value against the greenback since the beginning of the year.

The government said it would guarantee returns on lira deposits at rates similar to those of foreign currencies. Turks would have to deposit lira into fixed accounts with a minimum interest rate, but the state would offset the difference against the dollar.

The government didn’t say how it would pay for the incentive, and economists suggested that the central bank would continue to print money.

The entire cryptoMarket capitalization is up 4.7% in the past 24 hours to hit $ 2.4 trillion, and it is likely that Turkish trade had some impact on the uptrend.

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Source: Crypto News Deutsch

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