Central Bank of Turkey bans the use of cryptoassets for payments

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From April 30, the ban of the Central Bank of Turkey on the use of crypto assets to pay for goods and services comes into force. Against the background of this ban, the BTC rate fell below $ 61,000.

According to the Reuters publication, on the eve of the Government Bulletin, the Central Bank of Turkey issued a statement that cryptocurrencies and other digital assets based on distributed ledger technology cannot be used directly or indirectly as a payment instrument. The Central Bank of Turkey imposed a ban, citing the “irreparable” potential losses and significant risks of such transactions.

“Payment service providers will not be able to develop business models in such a way that crypto assets are used directly or indirectly in the provision of payment services and the issuance of electronic money, and will not be able to provide any services related to such business models,” the Turkish Central Bank said.

The ban on the use of crypto assets to pay for goods and services comes into force on April 30. Against the background of this news, the price of bitcoin fell by more than 3%, the current minimum is about $ 60,500.

Source: TradingView

In March, the price of BTC on Turkish peer-to-peer platforms rose to $ 100,000, which was almost double the rate on global exchanges. This was due to the increased interest of local citizens in bitcoin due to the collapse of the Turkish lira. Annual inflation in Turkey exceeded 16% in March.

In a statement explaining the reason for the ban, the Turkish Central Bank stressed that crypto assets “are not subject to any regulatory and supervisory mechanisms.”

“The use of cryptoassets in payments can lead to unrecoverable losses for the parties to transactions due to the factors listed above. Such transactions could undermine the credibility of the methods and instruments currently used in payments, ”the Central Bank of Turkey said.

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