Turkey Bans use of Cryptocurrencies for Payments Sends Bitcoin Down
Turkey’s central bank banned the use of cryptocurrencies and crypto assets to purchase goods and services, citing “irrepairable” possible damages and significant risks in such transactions.
In legislation published in the Official Gazette overnight, the Central Bank of Turkey (CBRT) said cryptocurrencies and other such digital assets based on distributed ledger technology could not be used, directly or indirectly, as an instrument of payment.
“Payment service providers will not be able to develop business models in a way that crypto assets are used directly or indirectly in the provision of payment services and electronic money issuance, and will not be able to provide any services related to such business models,” the bank said.
A growing boom in Turkey’s crypto market had gained further pace recently, with investors hoping to both gain from bitcoin’s rally and shelter against inflation.
In a statement explaining the reason behind the ban, the bank said these assets were “neither subject to any regulation and supervision mechanisms nor a central regulatory authority,” among other security risks.
“It is considered that their use 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,” the central bank said in a statement.
Read Also: Catholic priest quits calling see details here
Whats your take on this matter?
Do you have any questions, suggestions, or other contributions? Kindly use the comment box provided below for all your contributions. You are also encouraged to please kindly share this article with others you feel can benefit from this information if found useful enough as we may not be able to reach everyone at the same time. Thank you so much for sharing!
