Turkey bans use of cryptocurrencies for payments
Turkey’s central bank has introduced a new regulation banning companies from using cryptocurrency as a form of payment. Residents are allowed to hold cryptocurrency but not to buy goods or services with it.
Turkey’s central bank says it has studied cryptocurrencies and concluded that there are “significant” risks for both consumers and businesses. For example, cryptocurrency is not controlled by existing laws or regulations, and there is no central regulatory body that has control over the currency.
The central bank also says that the value of cryptocurrencies can fluctuate too much. According to the central bank, the anonymity of cryptocurrency would also ensure that the digital currency can be used for illegal purposes.
Crypto wallets could also be stolen or used illegally without the owner’s consent, it said. The final risk cited by the central bank is that transactions are irrevocable. Recently, the Central Bank of Turkey said, several initiatives have been launched in Turkey to accept cryptocurrency as a means of payment.
However, the central bank believes that this could cause “irreparable” harm to both customers and sellers due to the risks mentioned above. The use of cryptocurrency as a means of payment would also ensure that customers and businesses have less confidence in Turkish payment systems.
The authority has therefore decided to ban the use of all cryptocurrencies as a means of payment in Turkey. According to Reuters, cryptocurrency has become increasingly popular in Turkey recently due to the devaluation of the Turkish lira and inflation. In March, inflation in Turkey rose to 16 percent.
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