According to NTV, Turkey President, Tayyib Erdogan, announced during a news conference in Dolmabahce Palace in Istanbul that the draft law on cryptocurrencies is ready and will be given to the Turkish parliament for discussion and approval. He expressed the expectation that the country would take a step ahead with the new economic model, and that the law would make crypto use easier in the country.
After two cryptocurrency exchanges crashed in April, the country has already accelerated its work on legislation for the digital tokens sector. Bloomberg reported at the time that the government was trying to establish a central custodian bank to remove counterparty risk, citing a senior official familiar with the plans.
“The law is ready, we will send it to Parliament soon without delay, We know there are risks, but there are opportunities as well. And we should take this risk.” ——Erdogan
Many crypto players were surprised by the Turkish government’s move because, in the past, both the Turkish government and central bank had never been supportive to the business. The Central Bank stated in April that crypto-assets cannot be utilized as a payment instrument either directly or indirectly.
For the tenth year in a row, the lira has lost ground against the dollar. Only the Cuban peso (-95.8%) and Libyan dinar (-70.9%) have performed worse than Lira since the beginning of the year.
Turkey’s citizens have become more aggressive in their adoption of cryptocurrency since the Lira’s depreciation. Local merchants are drawn to the unusual gains connected with coins like SHIB because of the lira’s fragility. Turkish citizens prioritize gold and the dollar, but they also purchase low-cost cryptocurrencies such as SHIB, VET, and XRP because BTC is too expensive. Tether is also used by Turkish traders as a proxy for dollar exposure.
Throughout the year, Turkey’s already booming crypto mania accelerated as investors joined a global rally in Bitcoin, seeking to profit from the cryptocurrency’s ascent as a kind of inflation protection.
Governor of the Central Bank of the Republic of Turkey (CBRT), Şahap Kavcıoğlu, earlier stated that the Treasury and Finance Ministry is working on more comprehensive laws for cryptocurrencies, but that the bank does not aim to ban them.