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Cryptocurrencies in Turkey transform the country’s economy

Cryptocurrency world is not only charts and websites that tell about the state of the digital financial world. The cryptocurrency world is primarily people for whom a new kind of money is not just a topic for hype, but a real way to save their savings and a new way of calculating, independent of traditional banking systems. We have already introduced you to the state of the cryptocurrency market in the United Arab Emirates, Malaysia and Indonesia. This article will focus on Turkey – one of the most progressive countries using cryptocurrencies in everyday’s life.

For Turkey, cryptocurrencies have long been more than just another relevant “agenda”. Walking along Istiklal street, the biggest pedestrian street in Istanbul, you will definitely notice pedestrians stopping in front of the windows of NakitCoins, the first Turkish cryptocurrency exchange, where owners of digital money can make secure transactions, exchange and buy assets simply by entering the company’s office from the street.

Crypto in turkey transform the country's economy
You can buy or sell cryptocurrency in Turkey at an exchange office, just like any traditional currency

Turkey is a special country of the cryptocurrency world, where interest in digital finance is increasing every year, despite high volatility and changing market trends.

“Over the past year, the lira has lost about 40% of its value, and therefore the Turkish people are very interested in cryptocurrency investments,” says Cem Yilmaz, founder of NakitCoins.

“A few years ago, the Turkish economy was aimed at dollarization and many people kept their savings in American dollars. Sharp fluctuations in the exchange rates of world currencies and the fall in the value of the national currency have changed dollarization to cryptolization,” says Turan Sert, adviser to one of the most popular Turkish crypto exchanges – Paribu.

It is quite difficult to accurately estimate the number of crypto investors in Turkey, since not all exchanges and exchange offices operating in the country share data. But according to experts, their number is about 12 million people.

“If the owners of cryptocurrencies in Turkey created their own political party, they could become one of the most numerous in the country’s parliament,” says Sima Baktas, a lawyer specializing in cryptocurrencies and co-founder of CryptoWomen Turkey, a non-profit organization that conducts crypto seminars and workshops to educate the public in the field of cryptocurrencies.

Baktas estimates the Turkish cryptocurrency market at least 14 million people out of 84 million people. The trend towards an increase in the number of crypto investors, according to Sima Baktas, is due to the growing popularity of a new type of digital finance among the young population, who are already familiar with the online world and are trying to find a way to protect their savings from the depreciation of the lira.

The growth of interest in cryptocurrencies and the increase in the number of investors and owners of digital money is happening even despite the fact that back in 2017, the Turkish government warned about high volatility and the danger of buying cryptocurrencies.

According to the “Crypto Assets Report” prepared by the Central Bank of Turkey in 2021, there are 40 cryptocurrency platforms operating in the country and the volume of their transactions is 28 billion Turkish liras. However, these figures are estimates based on the transaction volumes of trading platforms that exchange data.

To assess Turkey’s position in the cryptocurrency market, it is necessary to look at its place in the international arena. According to a study by Statista in 2021, published within the framework of the World Economic Forum, Turkey was among the top ten countries in the world and ranked first in Europe in terms of the number of owners of digital assets.

Since the place of cryptocurrencies in the financial system of Turkey has not yet been fixed at the legislative level, in 2022-2023, the government and the Central Bank of the country plan to adopt a number of laws regulating the tax policy on digital assets. For Turkey, the adoption of such initiatives can become a catalyst for the further development of the digital finance market and an incentive for their dissemination.

Turkey is a unique region, due to its location and technological development, capable of having a significant impact on the global crypto assets market. Given the more than loyal attitude to cryptocurrencies among the population of the country, they can become one of the driving forces in the economic development and growth of the welfare of the Turkish nation.

Crypto in turkey transform the country's economy

IslamicCoin is the first project to provide the community with powerful financial technology that allows for seamless transactions, support innovation and charity. The project is 100% compliant with Sharia law and benefits the community. Developers focus on sustainable development and use technology and innovation to ensure financial sustainability.

“At the heart of Islamic finance is the prohibition on charging interest. Islamic finance has always been focused on not shifting most of the risks to one side of the financial relationship. In Islamic finance, balance and transparency of transactions should be observed, which can negatively affect our society,” says Mohammed Alhashmi, one of the founders of Islamic Coin.

Islamic Coin is aimed at 1.1 billion Muslims using the Internet. The project creates convenient tools designed for users who have never been owners of cryptocurrencies. Thus, the creators of IslamicCoin are expanding the capabilities of the Muslim online community by providing it with opportunities to use a new form of digital money and involving them in the modern digital world.

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