Turkey’s Ban on Cryptocurrency
By Space Coast Daily // October 20, 2021
The Central Bank of the Republic of Turkey or the TCMB has imposed a complete ban on using any cryptocurrency for financial transactions such for purchase of goods and/or services.
Like everywhere else in the world, there was a constant development of a local crypto market in Turkey as well and this market has seen rapid growth recently especially due to the rise in prices of Bitcoin.
This decision of the TCMB has a very negative impact on this developing market in Turkey as many stakeholders who were receiving profitable returns with the use of how to buy yuan cryptocurrency will now be deprived of this joy.
However, one most apparent reason behind this decision is most certainly the depreciation of the Turkish currency i.e. the Turkish lira. This decision of the TCMB is aimed to strengthen the Turkish lira by reinstituting the monopoly lira previously had.
There is no doubt that governments all over the world feel threatened by the rise of cryptocurrency as it provides people with a great alternative currency which is not centrally regulated. And it is certainly in the governments’ interest to keep currency regulated and under their grip.
Regardless, governments are able to see the benefits of crypto and if they impose taxes on crypto, they can also benefit from this rise. And we hope that this approach of trying to maximize the benefits of crypto are adopted by most governments around the globe and this drastic step taken Turkey is not repeated anywhere else in the world.
This is important because while it was only Turkey that banned crypto, the implications of these decisions were global. People read such news or find data analytics through their crypto signal providers and they reach a state of panic that maybe their country’s government will do the same and they will lose all their crypto holdings.
In such panic, people are prone to dump their holdings and as a result the market goes in a substantial dip – reducing the prices of almost all cryptocurrencies. This dip in the market then scares even more people who are unaware of the reason behind and they too follow the same strategy and like a chain reaction the market crashes.
But as big as cryptocurrency has gotten, it is almost inevitable that the market will recover and those who made hasty decisions in panic are left to regret their decision. However, we cannot blame these people. Even though news is easily accessible and helpful tools like crypto trading signals are available for traders to utilize, not everyone utilizes these avenues and not everyone is an expert in how the financial system works.
Keeping this context in mind, not only does it become clear that governments should not take such measures as to ban cryptocurrency and deprive their citizens from its benefits. In fact, the government should take part in the growth of crypto.
Every government should include policies on the growth and regulation of crypto in their general fiscal policy. This will not only make the people feel less threatened when investing in crypto, it will also make them love their government, which obviously increases their chance of being re-elected. So a clear win-win situation.
However, as great a future as this sounds, we are unfortunately not there yet. Such a big change in the global economy and the government-backed use of alternate currencies is a change not many politicians are ready for – not many common people seem to be ready for this either.
But it does make sense because while anyone can enter the crypto trading market and even start making profits by using a high quality crypto signals provider, there is still a lot of uncertainty surrounding what each cryptocurrency is backed by.
Since most companies who are making crypto are operating globally, any restriction or ban on their operations in one country has an impact on that crypto globally, which is most often not the case with conventional currencies. So until crypto is properly regulated by government authorities, everyone will remain reluctant to take the first step, which can lead to some government’s taking the opposite step like Turkey did.
At this stage, we can only hope that Turkey lifts this ban soon. There should be no doubt in the fact that all governments will eventually stop their campaigns against crypto and realize it is here to stay. The best option for them is to join forces with it. While this is indeed the most likely eventuality, we just hope it happens sooner than later.