Using Bitcoin to pay for various goods, items, and services will be deemed unlawful in Turkey by the end of the month as part of a new nationwide prohibition.
Ban to arrive by the end of April
Turkey’s official newspaper, the T.C. Resmî Gazete, had reported that the nation’s Central Bank has decided to forbid the use of cryptocurrency for payment and online purchases. The ban is said to be implemented on April 30th. Local investors are outraged at this move by the Central Bank, and many see it as a step backward for the otherwise progressive and crypto-friendly country.
Furthermore, payment service providers are also prohibited from incorporating digital commodities and properties into their respective market processes and models, both directly and indirectly. This is sure to put a dent in local businesses as many rely on utilizing crypto to make online purchases in a time where national currencies are experiencing a bit of a decline, as is the case with the Turkish Lira.
Turkey’s government made this decision after PayPal announced plans to accept crypto and blockchain payments for a variety of transactions with millions of retailers worldwide. This was definitely well received by many investors, as it allowed them to utilize the crypto they already had in a much more practical and realistic way.
However, although PayPal has offered this service to most countries, Turkish residents are extremely unlikely to be able to take advantage of it since the company has stopped operating in the country as a result of some licensing issues in the past. It really is unfortunate too, as other nations such as Pakistan and India also have to rely on alternative forms of international banking systems and payments providers such as Payoneer when it does come to dealing with nations from the West, such as the United States and Canada.
Turkey’s Erdogan under heavy fire as global interest in crypto resumes
It should be noted that while these new legislations and regulations prevent the use of cryptocurrencies to purchase goods, products, and services, utilizing cryptocurrencies to continue trading in the country will still remain legal for the time being. Investors will therefore breathe a sigh of relief in understanding that cryptocurrencies have still not been completely eradicated from Turkey, but the ban would undoubtedly leave a bitter taste in their mouths nonetheless.
President Recep Erdogan has received a lot of backlash for his decisions lately, especially after the removal of Naci Agbal, and this recent development surrounding the ban is certainly not going to do him any favors. Global interest for cryptocurrency and especially Bitcoin has been at an all-time high following the recent success of not just BTC, but altcoins such as ETH and BNB.
Turkish residents are no different than that of the rest of the world, and they demand that their country recognize the need for cryptocurrency to become a mainstay and not be hampered by regulations.