- 29 July 2022
- Posted by: Cryptovalues
- Category: Cryptovalues News, World News
The Turkish lira being one of the worst currencies internationally in recent months, Turkish citizens have turned to cryptocurrencies, leading the country to be one of the most active in this market worldwide.
Inflation is at a 24-year high of 78.62%, and this has led to an increase in crypto volumes in Q1 and Q2 2022, compared to Q4 2021.
In Q1 2022, trading volume increased by 51% compared to Q4 2021, while Q2 2022 trading volume increased by 40%.
The reasons why the inflation rate has risen to such astronomical figures are many, including the rising cost of energy and the weakening of the Turkish lira, and other countries have also faced similar inflation spikes so that the European Central Bank is preparing to raise the interest rate for the first time in 11 years.
Bitcoin’s reliance on Bitcoin to protect one’s financial positions is intuitable with all demographics turning to cryptocurrencies regardless of age or gender.
Turkey’s President Erdoğan, known for his aversion to rising interest rates, is looking for solutions to tackle the decline of the Turkish lira and the country may be forced to take drastic measures to address the problem.
These include the introduction of the country’s gold savings into the banking system. According to the government, the gold conversion deposit account will offer risk-free income. There is an estimated $250-350 billion in gold in households.
Contrastingly, the situation regarding crypto in Turkey has banned cryptocurrency payments in 2021, but this does not seem to have stopped citizens from investing in this asset class.
On the other hand, Turkey’s software industry is modern thanks to constant public support and has long since rivalled the best ones based in Europe.
Investments of around $19 million have been announced with the unqualified support of the President of the Republic, who declared:
“There will be no prosperity without producing technologies also in our country, in terms of content and software. We cannot look to the future with confidence if we remain dependent on other nations for this type of infrastructure”.