Post
Topic
Board Economics
Re: Turkish Central Bank Forbids use of cryptocurrencies as a mean of Exchange.
by
Lucius
on 19/04/2021, 10:03:12 UTC
Spot on. The Turkish Lira (national currency) has been facing issues for sometime now, and therefore it was not surprising to see the central bank curbing the usage of other currencies. During the last four weeks, the currency has devalued by more than 10%. The government is also facing acute revenue shortage, due to the fall in tourist arrivals. Still I have to admit that the Turkish government acted in a very mature manner, when compared to their colleagues in India and Nigeria. 

The Turkish lira has had big problems for years, have people forgotten what happened in 2018? It seems to me the matter was much more serious than today. Of course that year was very difficult for crypto as the long crypto winter began, and people were quite disappointed after the price started to fall sharply. Today, people see a way out and security in crypto, and people need to be controlled precisely through the monetary system and make them dependent on that system.

The 2018 Turkish currency and debt crisis (Turkish: Türk döviz ve borç krizi) was a financial and economic crisis in Turkey. It was characterized by the Turkish lira (TRY) plunging in value, high inflation, rising borrowing costs, and correspondingly rising loan defaults. The crisis was caused by the Turkish economy's excessive current account deficit and large amounts of private foreign-currency denominated debt, in combination with President Recep Tayyip Erdoğan's increasing authoritarianism and his unorthodox ideas about interest rate policy.

As you can see from the quotes above, the Turkish president and his methods have not pulled the country out of the crisis, and maybe the whole 2018 thing can happen again. As for India and Nigeria compared to Turkey, I would not agree that any of them did the right thing - because bans of any type will only produce a counter-effect, because people today have a window to the world (internet) and want their human rights - and they can rightly say that if something is completely normal in many countries of the world, why is it forbidden in our country?

As I have already written, restrictions of this type only occur in countries where human rights are still at a very low level.