It seems that in Turkey, things are starting to move regarding crypto and Bitcoin.
Turkey is digitizing
Cointelegraph just reported that Turkey is quietly digitizing despite its high-inflation economy, and the lira’s volatility might be correlated with the prices of Bitcoin (BTC) and Ether (ETH).
The same article posted on the online publication mentioned above notes the fact that the lira’s volatility stemmed from a contrarian interest rate cut made by Turkish President Recep Tayyip Erdoğan amid high inflation and against the advice of central bankers.
“High inflation tends to devalue cash and drive investors — including major professional and institutional investors alongside top hedge fund managers like George Soros — to invest their money in cryptocurrencies.”
According to official notes, the inflation soared above 20%, and Erhan Kahraman, news editor at Cointelegraph, said that during 2021:
“Bitcoin and other cryptocurrency usage in Turkey increased elevenfold.”
We suggest that you check out the complete article in order to learn more details about the issue.
It’s also worth noting that not too long ago, the president of Turkey met with the one of El Salvador.
The Wall Street Journal notes that Turkish President Recep Tayyip Erdogan met with the leader of El Salvador. As you probably know by now, El Salvador is the first country to make bitcoin legal tender.
It’s also worth noting the fact that the Turkish central bank kept interest rates on hold in a move that will likely do little to arrest the country’s currency crisis.
Check out what WSJ notes:
“With El Salvador planning to launch a $1 billion bitcoin-backed bond, Turks and foreign investors closely watched to see if the meeting between Mr. Erdogan and President Nayib Bukele in Ankara would mark a shift in how Turkey’s government views cryptocurrencies, despite the past month’s slump in bitcoin’s dollar value.”
El Salvador made headlines recently after the executive board of the International Monetary Fund recommended that El Salvador discontinue the use of bitcoin (BTC) as legal tender in the country due to the financial risks and liabilities that are created.