Everyone is talking about Dogecoin spikes 400% in a week, stoking fears of a cryptocurrency bubble, but I'm more interested in the fact that
Turkey's crypto ban is to take effect April 30. You heard that right, Turkey is currently in a currency crisis so they announced a ban on cryptocurrencies as a means of payment earlier this morning.
I have been following the currency crisis since mid-march when the value of the Turkish lira fell 15% after President Recep Tayyip Erdogan sacked the governor of the country's central bank. At this point the the Turkish lira appears to be recovering a bit after having been hit hard by the effects of the coronavirus pandemic and rising consumer prices. The central bank decided yesterday to hold its main interest rate at 19%... Now they are banning crypto because people are looking for alternative payment methods as the lira looses purchasing power.
The Central Bank of the Republic of Turkey released the ban in a press release titled the “Regulation on the Disuse of Crypto Assets in Payments.”
“It is considered that their use [crypto assets] in payments may cause non-recoverable losses for the parties to the transactions due to the above-listed factors, and they include elements that may undermine the confidence in methods and instruments used currently in payments,”
Source
The risks they highlighted were:
- they are neither subject to any regulation and supervision mechanisms nor a central regulatory authority,
- their market values can be excessively volatile,
- they may be used in illegal actions due to their anonymous structures,
- wallets can be stolen or used unlawfully without the authorization of their holders, and
- transactions are irrevocable.
First most of these negatives are good for people bad for governments with hyper inflation. The point about illegal activity is just false based on some of the info I found for one of my recent post Janet Yellen and Crypto Fear mongers Get Pushback From Former CIA Director
At this time Bitcoin has from $63,000, but is trading back to $62,000. The weakness might be cause by Turkey’s decision as it could set a bad precedent for other crisis-riddled countries struggling to protect their currencies, but I'm still a bit skeptical that its actually the main cause for the drop.
Many have warned that such bans could drastically impact the markets and I think that thesis could be true, but I also don't think many governments have the ability to restrict users. They may ban crypto, but it's easy to get around these bans.
Crypto proponents have long argued that bitcoin and other transactional currencies like xrp, ltc and algo are a better means of payments and I agree. We will have to see how this actually impacts the global crypto market and see if it sets off a chain of bans, but I don't think it will.
Posted Using LeoFinance Beta
I somewhere read that 18% of turks hold crypto which is a significant portion . I wonder if we will see a protest against this move?
Posted Using LeoFinance Beta
I think that the government can't stop people from getting crypto. They would have to stop the internet. This is a revolution!
Governments that ban crypto is crippling their own country's financial future and unfortunately the citizens will take the hit. The short-sightedness and knee-jerk reaction of the government will only detriment themselves, whilst allowing countries that have not banned crypto to continue to flourish.
Posted Using LeoFinance Beta
This is not a ban on crypto itself, you can still buy and sell crypto. It is a ban on the usage of said crypto as a payment method. i.e you can't pay in BTC for some milk from the market, but you can buy TRY to pay for said milk.
Posted Using LeoFinance Beta
Oh I see . That is okay I guess ? I have to research more I guess . I am okay with converting crypto to fiat so that I have to buy . A complete ban on crypto will be hard to take.
Posted Using LeoFinance Beta
They can still buy, but not use it as a payment which is stupid. They want people to buy good and services with a hyper inflated fiat. The whole ban does not make sense because if you can buy for investment purposes how can they tell if you buy and sell good/services when you can say it's investment gains...
Because they define crypto as a commodity, like USD or EUR. You can't pay for stuff in USD or EUR in Turkey either.
Absolutely . They want to have control over the financial sphere but they are taking away the financial freedom and potentially millions of opportunities to make a living.
Posted Using LeoFinance Beta
The only way then can enforce that is to shut off all electricity. Stupid asses.
Shut down the internet! It's a joke.
This might actually be good publicity for bitcoin as this acknowledges the crypto asset as a safe haven.
There's two sides and I like that perspective more than how this FUD is presented in the news.
So have they shut down the internet? Barred VPN? So how will they enforce this ban?
The beauty of the internet and the beauty of cryptos,
the only thing they can aside from banning some sites and stuff that you can bypass with vpn as you said is to for the banks to not accept cryptos payments
for example in Greece one bank just did that. I speculate that they have checked some exchanges like binance, bittrex and such and any transaction through these will be banned. For example the Greek bank send a message to the users letting us know that money that are suspected to come through cryptos will be returned
Posted Using LeoFinance Beta
SO they cut off the fiat off ramps which makes it difficult. I feel like there are ways around that I want to say you could use paypal. I'll have to see if there are apps that could be linked to a bank account that also convert crypto/fiat.
I know crypto can’t be stopped it’s kind of a failed effort.
Posted Using LeoFinance Beta
They can't do that but this move might scare the big players in the crypto field . Say for you and me they don't even care but someone who wants to invest millions of dollars would be afraid now .
Posted Using LeoFinance Beta
This will just have the opposite effect and make people find way to buy more of these assets to escape the current inflation.
In addition, the strongest nations (US, China, EU...) have all backed down as it is IMPOSSIBLE to prevent users from buying these cryptocurrencies.
So Turkey banning it ? What a joke.
Posted Using LeoFinance Beta
Yeah it’s a joke but it has implications like the news trying to blame the market drop on it...
What a stooopid bunch of clowns heading such a beautiful country! Closed the gates of a flourishing economy while having a fucked up economy themselves.
Posted Using LeoFinance Beta
They don't want their fiat to fail that is all. People will use what is the easiest and cheapest and crypto is much better than a hyper inflated fiat.
Exactly @cryptictruth, their Fiat is going to die because the government doesn't have a proper plan to revive it. Thanks to this, more people will now explore crypto and realize its value. This is what happened in India and Nigeria. The same thing is going to happen here as well.
Posted Using LeoFinance Beta
The saddest thing about this is that you could replace 'crypto assets' with 'Turkish Lira' and the list of problems would still make sense.
Are they in a right wing phase Turkey? That wouldn't surprise me given how much conflict there is nearby - this smacks of that - stupid leader with too much power fucks up the economy and then bans the alternatives.
I think this is actually good for crypto perversely - it's like Russia banning the Beatles in the 1960s.
Posted Using LeoFinance Beta
They just want to hold the control over the financial assets I believe . That is how all governments works isn't it?
Posted Using LeoFinance Beta
Facts!
I guess they do! Although the EURO is an odd one in that respect!
Posted Using LeoFinance Beta
It is only arrangement to take taxes from crypto.
Posted Using LeoFinance Beta
That's what Indian government is doing right now . They are planning to tax 18% on crypto holdings but I am okay with it since it will legalize the crypto here.
Posted Using LeoFinance Beta
Taxation is fine, but don't call them bans. I think it's all FUD and governments are worried they are loosing financial control.
I'm Turkish. Sadly true they are trying to prevent cryptocurrency investments and trades, but no matter how you try you can't stop a revolution. Cryptocurrency is that, and winter is coming for those who consider themselves big players. Big players are the people who work, produce and share a common sense on independence. Financially independency the most!
Briefly, poor efforts to stand against crypto revolution.
Posted Using LeoFinance Beta
They can not stop it, the same thing like in Venezuela will happen in Turkey if the value of the Lira continues to fall - people will try to bring their savings somehow into crypto, setting up nodes and things like this. There are smart people all around the world and somehow they always will find ways to avoid those bans.
Posted Using LeoFinance Beta
A foolish decision by the Turkish government, this BTC and cryptos ban seems to me like the fight against drugs: the most useless thing that central powers can do. We should only remember the example of Nigeria, whose government also maintains by decree the ban on the exchange and possession of cryptos for the same reasons as Turkey, however the population assumed the exchange via P2P with offline wallets or wallets not linked to the official exchanges making impossible the detection by the authorities of this type of "clandestine" trade.
On the other hand Nigeria, as a result of the ban on cryptos is the place in the world where BTC is sold at the highest price, exceeding USD 100K, so that is what awaits Turkey, people, especially those who know that the local fiat currency is worthless garbage will continue to acquire and exchange BTC and make it more expensive to the disgrace of the government of that country.
Posted Using LeoFinance Beta
It is just nonsense, nobody can restrict you from using an alphanumeric codechain.
Happy to live in Austria though...
Posted Using LeoFinance Beta