The European country has witnessed notable growth in the adoption of cryptocurrencies, having a considerable increase in people using cryptographic technology, reaching relatively high figures of up to 60% in the last year and a half alone.
The data collected through the responses of more than 600 people is part of a study in Turkish territory called 'Understanding Crypto Users.' This study highlights the considerable increase in crypto assets among the population of the European country.
According to Turkey's different economic reports, there’s an increase in cryptocurrency investments across the nation. This is thanks to great economists who have concluded that cryptocurrencies are a perfect means to counteract the significant inflation the nation has suffered in recent years.
Recent studies show that the Turkish Lira has lost its value by 50% against the US dollar, prompting Turkish investors to carry out various containment measures to protect their long-term investments. Portraying cryptocurrency as an alternative mode of finance, website cryptocurrencyhelp.com, as well as leading experts in the field, claim that digital assets can stabilize the economy and serve as a reliable store of value.
The most exciting part is why Turks invest their money in cryptocurrencies. While a percentage close to 58% seeks to protect and accumulate wealth in the long term, the other 37% see cryptographic assets as having secure storage, something like a reserve of value. The leading digital currency in this country is Bitcoin, which has more than 70% of users, followed by Ethereum.
It is a correct measure for the Turks to save their investments and not be affected by the country's growing inflation. These containment measures also apply in countries such as Nigeria and Brazil, where inflation is also of great concern to governments and economists worldwide.
Something curious to recognise is that not only are men immersing themselves in the world of cryptocurrencies, but the significant participation of young women in the crypto-active sector in the Turkish country has also been noted. The data show that almost 47% of investors are women. As for the Turkish government, it has been exploring the development of a central bank virtual currency called the Digital Lira, marking the country's evolving stance on new methods of virtual finance.
Crypto in the Middle of a Financial Crisis
According to data from specialised media, Turkey has shown the most interest in cryptocurrency exchanges worldwide since this is an alternative measure for investing and preserving state wealth. Reports tell us of a significant increase in the adoption of cryptocurrencies in recent months, reaching an increase of more than 50% of the population due to several financial factors and a population that is an expert in new technological advances. The young, technology-savvy population is the leader in adopting digital assets in the country, as new generations seek to adapt as quickly as possible to new technologies.
As mentioned, cryptocurrencies have served as a containment measure against the fall in value of the Turkish Lira. What surprises finance experts is that the idea of cryptocurrencies in Turkey has appeared at one of the most significant lows of virtual currencies. However, the move has worked out wonderfully for the Turkish population since they can now keep their investments safe and carry out transactions that help them increase their assets, which is very good for both crypto-assets and the country's economy.
Rising Inflation in Turkey
The data show that Turkey has been in an inflation crisis since the end of 2019, which significantly complicates the cost of living for the different families in the country.
Inflation began to increase again in July of this year, reaching an inflation rate of 47%. However, the country's annual inflation shot up to 60% in August. The state data agency mentioned that prices increased to 58.6% in 1 year and ended in August with 47.8% in July.
On August 7 of this year, media such as Euronews published a Twitter publication emphasising the country's cost of living. In this tweet, we can see different information about the nation's current economic state.
The inflation jump started rising in the prices of food and other services. In contrast, further substantial increases appear in household equipment, clothing, health, restaurants, tourism, hotels, and cultural entertainment activities.
Turkish Government's Attitude Towards Crypto Assets
Turkey is one of the largest countries in adopting cryptographic technology, according to the cryptocurrency research report published by the Turkish Information and Communication Technology Authority in July of this year. Currently, there is no legal investor protection system for your crypto investments. However, the government is working on an unofficial legislative project on crypto assets and service providers.
This unofficial legislative project aims to regulate crypto assets, different cryptocurrency trading platforms, crypto wallets, cryptocurrency custody services, and CASPs in the Turkish legislature for the first time.
As for non-hosted wallets, the government at the beginning of the project provided a separate environment for this type of bill, although investors harshly criticised this approach. Therefore, the latest unofficial legislative draft completely abandons the restrictive policy against non-hosted wallets, allowing citizens to make transfers of crypto assets from CASP to non-hosted wallets in conjunction with the group's money laundering and anti-terrorist financing of financial action provided by the state.
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