Turkey: Crypto trading boom in the shadow of the pound collapse

The number of transactions in cryptocurrencies in Turkey jumped again above the level of 1 million per day after the successive historical low of the pound, according to data collected by Reuters.

Concerns over Turkey’s economic policy have led the Turkish currency to a total loss of almost 40% since September, prompting Turks to look elsewhere to invest their savings to avoid the negative impact of the jump in inflation. .

Reuters cites analysts Chainalysis and Kaiko for the data it has gathered. Transactions exceeded 1 million for the first time earlier this year, when the sudden replacement of the central bank governor in March triggered the first pound slump for 2021.

However, the number of trades fell again below 500,000 before the last burst of volatility in the pound rekindled investment interest in crypto.

The conversion of the pound into US dollars or gold is common for Turks who have seen the currency lose 90% of its value since 2008. With Ankara, however, trying to make these practices more difficult and with cryptocurrency prices rising are making strong profits this year, cryptocurrencies have become more popular.

The data also showed that bitcoin and Tether, a “stablecoin” that aims to maintain a stable value and is widely used in crypto transactions, are the most popular in transactions in Turkey since 2019.

The rise of cryptocurrency trading, however, has caught the attention of authorities. The deputy finance minister said last September that authorities would impose regulations on cryptocurrencies. The central bank, meanwhile, banned traditional cryptocurrencies in April, citing “irreparable” damage and trading risks.