Cryptocurrency has emerged to become a legitimate industry powering countless innovations as we speak. Most countries in the world have accepted and allowed the development of this industry with open arms. These countries have reaped great rewards and this seems to only be the start. However, there are countries in the world that have had a negative stance against cryptocurrency since the beginning. India and China are often the biggest examples.
Turkey seems to be the latest country to join that list. The central bank there announced on Friday that cryptocurrency can no longer be used for payments for goods and services. This applies to citizens as well as businesses, who have been given two weeks to clear any cryptocurrency they possess for payment purposes. The bank will officially be enforced from April 30.
No goods and services with crypto
The central bank has also barred payment providers from providing fiat onramps for cryptocurrency purchases. Historically, this has been a popular method for people in Turkey to buy cryptocurrency. This decision by the central bank is poised to hurt many businesses that had grown thanks to rising demand for cryptocurrency payment solutions.
However, it seems like cryptocurrencies haven’t been fully outlawed in the country. People will still be able to wire the transfers from their bank account to online cryptocurrency exchanges. Therefore, they will still be able to trade in this emerging asset class. They will also be able to store their digital assets in their wallets.
Control over crypto payments
Turkey is known to have overbearing control over the payment infrastructure in the country. So, this decision to prevent crypto from being used for purchases could be to further tighten that grip. Another reason could be the rapid fall in the value of the Turkish Lira. The government and the central bank might be fearing that the use of crypto for payments could cause a further decline in Lira. This could not only be harmful to the country’s financial stability but also its sovereignty.
Proponents of cryptocurrency have criticized this decision from all over the world. And it remains to see if Turkey makes crypto completely illegal or if they allow its trading as an asset class only.