Since the real currency no longer offers any security, the Turks have begun to turn to cryptocurrencies, not only to keep up with the times, but also to offset the losses they have from the real currency. The Turkish lira has fallen compared to the dollar in recent years, despite the central bank’s anxious efforts to curb it. Foreign exchange reserves have reached very low levels, the national currency has lost much of its value in the last three to four years while inflation is galloping.
On the other hand, President Tayyip Erdogan has changed 4 central bank governors in less than two years. Such moves limit citizens’ trust in the government. No one seems to believe that inflation is at 16% as it became known in March: unofficially it is much higher and this is seen daily in the wallet of the underprivileged.
Under these circumstances, many people turn to cryptocurrencies, writes the Guardian, which if nothing else, can offer a shield against inflation. Those who still do not trade Bitcoin or other digital wallets are eagerly seeking information about them.
Between early February and March 24th, cryptocurrency transactions reached 218 billion Turkish liras, up from just 7 billion last year, when cryptocurrency transactions reached 23 billion liras.
And all this at a time when the digital currency has reached an all-time high at $62.000.