The radical Turkish president, Recep Tayyip Erdogan, recently waged war against Bitcoin.
His government is set to soon unveil a local virtual currency, Digital Lira. So, the firebrand leader is simply asserting financial control ahead of its premiere.
The country’s central bank welcomed the use of the Digital Lira as a currency. But Erdogan believes the move will face conflict with virtual currencies such as Bitcoin.
“We are [now] at war with Bitcoin,” he said.
The president also said his government will proceed with their new digital currency, which is “our fundamental identity in this matter”.
At the time, the president was addressing a national youth representatives meeting that attracted youth leaders from 81 Turkish provinces. The event was held in Mersin, a port city in Southern Turkey — and an important hub for the country’s economy.
Crypto is Istanbul’s hot topic
Despite the president’s tough stance against cryptocurrency, many Turks are already knee-deep into the crypto world. And using digital assets as a hedge on the volatility of the Turkish Lira (official currency) in the forex market.
Currently, cryptocurrency is a hot topic in the country’s capital, Istanbul, even though the government is fronting proposals to curb crypto.
Imposing strict regulations on the booming crypto industry is the only way to fully implement the use of Digital Lira, which Erdogan plans to test around next year.
Why’s the president against Bitcoin?
The rapidly growing popularity of Bitcoin in Turkey is impossible to ignore.
The booming industry now poses a threat to the country’s economy — pushing Erdogan to launch Digital Lira, a digital currency solely governed by the Central Bank of the Republic of Turkey in partnership with the Research Council of Turkey.
In 2018, Turkey wallowed in a debt crisis that nosedived the country’s credit rating to new lows. Lira’s value plummeted to about 10%, while crypto trading volume in the country soared to about 60%. This triggered massive crypto adoption in Turkey.
According to recent statistics, approximately 20% of Turkey’s population was buying, selling, and investing in cryptocurrencies in 2020.
The crisis forced the president to come up with solid solutions to set up a 2023 economic development framework to revive the country’s economy. Launching the digital currency is part of this strategic plan.
Erdogan desires a regulated digital currency that curbs the sudden mushrooming of cryptocurrencies in Turkey. That’s why he’s eager to take control and assert his supremacy. And what better way than to wage war against Bitcoin using Digital Lira.
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