The Turkish Lira weakened 44% in the past year, and the currency crisis led to a 19-year high inflation of 36% in December 2021. The lira has lostย 40% of its value against the dollar since September.
A spike in living costs has resulted in poverty and protests against the government.
Sponsored
For a long time, Turks put their money into U.S. dollars, euros, or gold, yet the rise of crypto assets in the past few years showed a new way to invest and stay in control of earned money.
According to WSJ, in Istanbul, the largest city in Turkey, advertisements for crypto exchanges have begun appearing on public transport, billboards, and in one of the cityโs airports. Even shops that sell Bitcoin have popped up next to foreign currency and gold exchange places.
Turks have been veryย fondย of the stablecoin tether, which has a value similar to the dollar. The Turkish lira has been the second most traded fiat currency after the U.S. dollar for tether.
โThe senseless policies regarding rates, diminishing trust for published statistics regarding inflation and political decisionsโฆmade cryptos a safe haven, even though cryptos are rather risky and volatile financial assets,โ
said Kaฤan ลenay, a 27-year-old trader from Turkey.
On the Flipside
- Cryptocurrencies have been growing in popularity in countries where citizens distrust governments on a large scale. This includes Lebanon, Venezuela, and many African countries.