The Turkish Central Bank has banned payments using Bitcoin and other cryptocurrencies. According to a government official gazette, cryptocurrency payments will no longer be allowed from April 30. The regulation prohibits payment processors from performing cryptocurrency transfers. On the other hand, cryptocurrency holdings do not appear to be affected by the ban.
The ban was justified by “significant risks” associated with cryptocurrencies, as stated on the central bank’s website. This includes, among other things, the lack of regulation and supervision, the often strong exchange rate fluctuations and the potential for them to be used for illegal purposes.
As a result, Bitcoin lost about three percent of its value and is now at $ 61,490. The cycle has moved from record to high in the past few months, with many experts already warning of a bubble.
The lira is weak
The payment ban comes at a time when the Turkish national currency, the lira, is weak and inflation in the country is high. Fans of Bitcoin or Ether also see digital systems as a hedge against currency weakness and inflation. This is clearly what prompted the central bank to make its decision.
It said in the Official Gazette that the use of cryptocurrencies could lead to losses for consumers and retailers. Additionally, there appears to be concerns that the cyber forex will put the lira under additional pressure. With the Turkish currency already in crisis, during which President Recep Tayyip Erdogan fired the central bank chief in March, this was the third change in the situation in a few months.
