Recently, turkey’s central bank has banned the use of bitcoin and other cryptocurrencies for purchasing goods as well as services. This decision was taken due to the significant risks in making bitcoin transactions, and it also cited possible irreparable changes. In an official gazette legislation published overnight, mentioned that the central bank of Turkey had imposed a ban on bitcoin and other cryptocurrencies.
For this decision, the central bank of Turkey has said that the bitcoin and other such kind of digital assets that are operated on the ledger distributed technology could not be taken into use directly or either indirectly as a tool for making the payment.
The bank of turkey said that the payment service providers would not be allowed to develop the business models so that the crypto assets are used in the division for making transactions. In addition to it, they cannot provide services which are related to such kind of business models.
Well, a significant boom in the turkey cryptocurrency was seen recently, and a lot of investors were hoping to make a profit from the bitcoin rally. It is essential to highlight that the weak Turkish lira and the inflation pressure were also reasons that led to the high demand for bitcoin in turkey.
The reason behind the reason
The explanation that was given by the bank for a reason behind the ban was that the bitcoin and the digital assets were never subjected to any regulation as well supervision mechanisms, and neither was it subjected to the central regulatory authority.
Moreover, this was explained that the use of bitcoin payments might cause some non-recoverable losses because of the above factors, and it also includes the components which may lead to undermining the confidence in using the currently used methods for making transactions.
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A few days back, Turkish authorities were seen demanding user information from the bitcoin trading stages. The turkey’s annual inflation has increased above 16 percent in March. This banning of bitcoin in turkey led to a decrease by 4% of the value of bitcoin. After the ban, the bitcoin was down 4.6 percent at 60333 dollars at 1117 GMT. This decision of banning was criticized a lot by the main opposition party of turkey.
The smaller cryptocurrency Ethereum and XRP was also decreased between 6 to 12 percentage.
This week the royal motors that are the distributor of rolls Royce cars and lotus cars in turkey, became the first business in the country that accepted bitcoin payments. Bitcoin remains very little used for commerce even when its popularity is increasing deliberately in the entire world.
The turkeys’ opposition leader has stated that the decisions as one of another case of bullying.
It was referred to the decision which was taken by the president in the last month in which he announced the fire of the governor of the central bank of turkey.
He added that it is like they always have to commit such foolishness at midnight. This was tweeted on his Twitter account. This ban will go into effect from the 30th of April.
Well, the economist Ugur nurses said that if any authority starts regulating with the imposed ban, then it will end up frustrated since this will encourage the fintech startups to move to foreign countries.
You might don’t know that the CEO of Turkish payment system firm papara said that the ban on the use of bitcoin and other crypto-assets was unexpected. There is not any chance of this ban getting uplifted, and this is the final decision of the turkey government.
Since this ban resulted in the downfall of the bitcoin value, so a lot of people immediately offloaded their bitcoins because they were using bitcoin for buying and selling products and services. The apparent reason behind the ban of cryptocurrency in turkey is still not justified, but this decision is made clear, and the use of bitcoin will be banned from 30th April 2021.