Bitcoin News

Bitcoin devaluation coincides with news of a ban from Turkey


The price of Bitcoin fell by 3% to $ 60,000 after the announcement of a ban on digital currency payments in Turkey.

to the the report CoinDesk, Turkey announced on Friday that the use of digital currencies as a method of payment will be banned in the country. According to the government, the order will take effect on April 30.

Earlier, Ray Dalio, a well-known investor, said that governments were seeking to protect their monopoly on currency by declaring bitcoin and digital currencies illegal; The problem we see now in Turkey.

The Turkish Central Bank said in a press release titled “Legislation on the Prohibition of Encrypted Assets in Payments”:

From the results it is inferred that their use [ارزهای دیجیتال] Payments may cause irreparable losses to the parties to the transaction; In addition, these currencies have features that may undermine the reliability of the methods and tools currently used for payments.

The price of Bitcoin fell from $ 63,000 to $ 60,700 yesterday. Experts believe that Turkey’s decision to ban digital currencies was the main reason for the fall in bitcoin prices. Turkey, meanwhile, is grappling with a financial crisis, and the ban on bitcoin is part of its policy to protect its national currency. Prior to Turkey, Morocco had banned digital currencies. India also appears to be seeking such bans.

Dalio said in an interview with Yahoo!

Each country protects its monopoly on supply and demand control. Governments do not want other types of money to operate and compete in their own country; Because the situation may get out of their control.

Proponents of digital currencies have long argued that bitcoin is a better payment method than gold and common currencies; Because every four years, through a mechanism called Hawing, its supply is halved. Bitcoin’s anti-inflationary monetary policy contradicts the inflationary policies of central banks such as the Federal Reserve.

People in countries like Turkey, which are struggling with high inflation, have started using bitcoin in recent years, and this has raised hopes for the global acceptance of bitcoin. Last week, Turkey’s inflation reached 16 percent. The value of the Turkish lira has fallen by about 10 percent since the beginning of 2021. The value of this currency had decreased by 24% in 2020. According to reports, Turkey sold approximately 11.7 tons of gold in February alone!

It should not be forgotten that the current ban in Turkey does not mean the suspension of bitcoin transactions in this country. The people of this country can still use bitcoin as a safe haven against inflation. However, exchanges of these currencies may involve complications.

“In a recent interview, BtcTurk Pro, an advisor to the Turkish money changer BtcTurk Pro, said:

Local and global exchanges currently use legal service providers such as Papara and Ininal to withdraw and deposit lira. After April 30, these service providers will not be able to exchange money with exchange offices.

Users can still deposit and withdraw lira through Turkish banks. It will not affect transactions.

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