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Turkey’s President Recep Tayyip Erdogan stated that he expects the nation to take a step forward with a new economic model. As the first step, he will address the crypto industry by enacting legislation to promote its legal use. He explained that his team is working on a Crypto Bill that will be sent to Congress for consideration as soon as possible. The draft is not yet publicly available and Turkey’s president didn’t say much about it.
In a press conference today, Turkey’s President Recep Tayyip Erdogan stated that he expects the nation to take a step forward with a new economic model. As a first step, he will address the crypto industry by enacting legislation to promote its legal use. In addition, Turkey’s President expressed his interest in cryptocurrencies. He explained that his team is working on a Crypto Bill that will be sent to Congress for consideration as soon as possible.
He said that “We will take steps on this issue by sending (the bill) to Parliament without delay. Turkey will make a leap forward with its new economic model. It is worth taking these risks.”
The draft is not yet publicly available. Turkey’s president hasn’t said much about it; however, one of the bill’s main points is the central bank’s role as a regulatory body for cryptocurrency transactions and their safe custody.
He said that “Citizens will know that their money is guaranteed by the central bank, the guarantor of the country’s treasury.”
Also, read Is Bitcoin the only answer that can save Turkey’s Lira?
In other words, although there is no mention of the adoption of Bitcoin as legal tender or payment currency, it does open a window to a possible industry of crypto-powered banking services. This is especially important given the recent failures of two major cryptocurrency exchanges, Thodex and Vebitcoin.
Turkey’s decision is surprising, given that the country has not always been crypto-friendly. President Erdogan himself stated at a press conference in September 2021 that, while he did not rule out softening the country’s stance on cryptocurrencies, he did not intend to promote their adoption. He even said they have no problem opening up to cryptocurrency but rather have a separate war and struggle against them.
President Erdogan said that “We will not give them such a premium . Because we will continue with our own money, which is now its original identity in this regard.”
These comments are consistent with the Central Bank of Turkey’s stance, which announced a measure banning the use of cryptocurrencies as a form of payment for the purchase of goods in April this year. The ban’s text was clear, and it even warned of irreversible damages for those who chose to use cryptocurrencies.
“Payment service providers will not be able to develop business models in a way that crypto assets are used directly or indirectly in the provision of payment services and electronic money issuance.”
However, the other side of the coin reveals an economic reality that could justify the Turkish government’s stache change. The country’s fiat currency has suffered one of the worst devaluations in its history. Despite the government’s efforts to promote the use of the lira and restrict the adoption of the dollar and the use of cryptocurrencies as a proxy for the US fiat currency, Turks continue to exchange their LIRA into cryptocurrency on a daily basis. After all, using a decentralized alternative to improve the economy might not be such a “surprising” idea, given the state of diplomatic relations with the United States.