There are potential signs that investors in Turkey, a country with a population of 80 million, may turn their backs on the lira – and instead buy digital currencies.
A study by Turkish researcher Tuntivay found that about 1 in 5 participants said they started trading in digital currencies after August of this year, when the lira took a dramatic fall in price. However, the Turkish national currency has since recovered by 26% against the dollar.
Inflation in the country remained high, reaching 21.62% year-on-year in November, another factor that prompted investors to seek ways to protect their savings. Turkey’s economic growth shrank to 1.6 percent year-on-year in the third quarter of 2018, down from 7 percent in 2017, Reuters reported.
Chart of the Turkish Lira against the US Dollar
Turkish citizens still go to digital currencies despite the recovery of the Turkish lira
In a report by a Turkish media, trading on some of the Turkish trading platforms rose 37% in November, reaching a weekly high of 72% in the week starting November 12. However, the full digital currency market saw volumes rise in November due to massive selling.
Meanwhile, Eminem Gon Serer, a Turkish-American professor at Cornell University, said the country’s relatively small population – comparable to the rest of Europe – and that their flexible adoption of new technology provides the conditions for creating a market eager to embrace and adopt digital currencies. In an article in the Turkish daily Hürriyet, journalist and business expert Isro Abelak said:
“I am pleased that recent investments in digital currencies have included Turkey. This is partly due to the fact that the Turkish people are very adaptable to new technologies and new ways of managing money “
The country’s main religious authority, the Directorate of Religious Affairs, has previously ruled that the use of digital currency is not permitted under Islamic law, but the writer Sara Nasser has stated that although there are religious question marks about digital currencies in Turkey, An attractive but risky solution for many Turks.
Vittalik Puterin, the co-founder of Ethrium, recently interacted with Turkish digital coiners on Twitter, expressing surprise at the size of the digital currency community in the country. Istanbul will also host one of the largest Balochsin forums in the Middle East, Africa and digital currency forums, and the Economic Biloxin Summit in February next year.