As traders and investors ride on Bitcoin’s latest whiplash, which will suffer a 15% drop within 48 hours, the central bank of Turkey plans to ban all Bitcoin and crypto payments, with effect from 30 April, due to excessive volatility ‘, among others.
The Central Bank of the Republic of Turkey (CBRT) on Friday introduced ‘Regulation on the use of cryptocurrencies in payments’, which prohibits the direct or indirect use of cryptocurrencies for goods and services, referring to the risks associated with the use of digital assets.
In a press release, the monetary authority outlines the disadvantage of cryptocurrencies, as well as their possible use in illegal activities, due to their anonymous nature. It also says that the crypto market is excessively volatile and that wallets can be stolen or used without the consent of the holder.
‘Crypto-assets pose significant risks to the parties involved for the following reasons:
- they are not subject to any regulatory and supervisory mechanisms or a central regulatory authority,
- their market values can be excessively volatile,
- they can be used in illegal actions due to their anonymous structures,
- wallets can be stolen or used illegally without the consent of their holders, and
- transactions are irrevocable.
Recently, some initiatives have emerged about the use of these assets in payments. It is believed that its use in payments may cause the parties to the transactions to incur irrecoverable losses due to the above factors and it contains elements that could undermine confidence in methods and instruments currently used in payments. ”
The move by the CBRT against cryptocurrencies is coming because the Turkish lira is still appreciating.
The TRY / USD pair (lira / dollar) fell from 8,334 in January to 0.003 dollars at the moment of more than 8%.
Bitcoin is currently trading at $ 55,540, which is 89% higher than the previous year.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their thorough research before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk, and that it is your responsibility to lose. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Note that The Daily Hodl participates in affiliate marketing.
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