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The Turkish president announces a cryptocurrency law and speaks of a new economic model

                                                            Der Weihnachtsmann könnte die Wünsche der türkischen Cryptowährungs-Enthusiasten erfüllen, während das Land eine revolutionäre Änderung seiner Cryptowährungspolitik einleitet.

Turkish President Recep Tayyip Erdoğan said in a press conference today that he expected the nation to take a leap forward with a new economic model and as a first step he would touch the crypto industry by passing a law promoting its legal use in the Country.

The Turkish President speaks of a new economic model

The President of Turkey emphasized his interest in the subject Cryptocurrencies. He stated that his staff had a crypto bill ready that would be sent to Congress for discussion as soon as possible.

“We will take steps on this matter by sending (the bill) to Parliament immediately. Turkey will take a leap forward with its new economic model. It is worth taking these risks. “

The draft is not yet publicly available and the Turkish President did not provide any further details on its content; However, one of the key points of the bill seems to focus on the central bank’s role as a regulator of cryptocurrency transactions and their safekeeping.

“Citizens will know that their money is guaranteed by the central bank, the guarantor of the state treasury”

In other words, although the introduction of Bitcoin is not mentioned as legal tender or payment currency, this opens a window to a possible branch of crypto-powered banking services.

This is particularly significant given the recent collapse of two major cryptocurrency exchanges: Thodex and Vebitcoin

A (not so) surprising cryptocurrency bill

Turkey’s decision comes as a surprise as the country has not been exactly crypto-friendly in the past.

In September 2021, President Erdoğan himself commented at a press conference that, although he did not rule out a softening of the country’s stance on cryptocurrencies, he did not intend to promote their introduction.

These comments are fully in line with the stance of the Central Bank of Turkey, which in April this year announced a measure to ban the use of cryptocurrencies as a means of payment for the purchase of goods. The wording of the ban was clear and even warned of irrevocable harm to those who chose to risk 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 e-money issuance.”

The downside of the coin reveals an economic reality that could justify the Turkish government’s change of course. The country’s fiat currency has suffered one of the worst devaluations in its history, and despite government efforts to encourage the use of the lira and restrict the introduction of the dollar and the use of cryptocurrencies as a proxy for the U.S. fiat currency, the Turks continue to exchange their lira for crypto more often every day.

And considering that diplomatic relations with the US are not at their best, using a decentralized alternative to improve the economy may not be that “surprising” after all.

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Source: Crypto News Deutsch

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