Turkey to ban Bitcoin as a means of payment

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Turkey has the use of Bitcoin and other cryptocurrencies as a payment system is prohibited. In short, it is not an absolute ban on its use, but it is still a blow to the sector in the Middle Eastern country.

The news comes a few days after a further rise in the popularity of Bitcoin in Turkey.

The relationship between Bitcoin and Turkey

As The Guardian newspaper reports, Bitcoin is widely used in Turkey and its popularity has been growing over the past two years, coinciding with the turmoil of the country's central bank. Last month, President Erdogan again removed the last governor of the central bank and this has caused a further fall in the value of the Turkish lira.

With the rise in local inflation and the escalating price of Bitcoin, BTC trading has also increased considerably, and this must not have pleased local authorities who are beginning to fear the power of Bitcoin.

However, as Reuters also reveals, Tether's trading has also grown tremendously in recent months.

The Bitcoin ban

Precisely today came the measure that tries to rebalance the relationship between the local currency and cryptocurrencies.

The Central Bank of Turkey has issued a measure that explicitly says that cryptocurrencies cannot be used as a means of payment.

Officially, a "Regulation on the disuse of cryptographic assets in payments".

The Central Bank, in a press release, explained that a study on cryptocurrencies was carried out that led to the following conclusions:

  • They are not regulated, they do not have control or regulatory mechanisms;
  • Its market value is volatile;
  • They can be used for illegal purposes;
  • Wallets can be stolen and used for illegal purposes;
  • The transactions are irrevocable.

Therefore, the Central Bank says:

“Recently there have been some initiatives regarding the use of these assets in payments. Its use in payments is believed to cause stranded losses for the parties to the transactions due to the factors listed above and includes elements that may undermine confidence in the methods and tools currently used in payments ”.

As the Documenting Bitcoin Twitter profile shows, Article 1 establishes a explicit prohibition of the use of cryptocurrencies in payments, including on exchanges.

Article 3, on the other hand, defines cryptocurrencies as a virtually created asset that is based on blockchain or similar technology, distributed through digital networks, but, unlike cash, is based on intangible assets that are not quantified.

This prohibition is a serious blow, although, as has been pointed out on several occasions, it's hard to stop bitcoin.



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