Turkish central bank bans use of cryptocurrency as a means of payment

The Turkish central bank has introduced a new regulation that prohibits companies from using cryptocurrency as a means of payment. Residents may own cryptocurrencies, but may not purchase goods or services with it.

Turkey’s central bank says it has researched cryptocurrencies and concluded that there are “significant” risks for both consumers and businesses. For example, cryptocurrency is not controlled by existing laws or regulations and there is no central regulatory body that has control over the currency. The central bank also says that the value of cryptocurrencies can fluctuate too strongly.

According to the central bank, the anonymity of cryptocurrencies would also ensure that the digital currency can be used for illegal purposes. Cryptowallets could also be stolen or used illegally without the owner’s permission, the institute said. The last risk mentioned by the central bank is that transactions are irrevocable.

Recently, several initiatives have been launched in Turkey to accept cryptocurrency as a means of payment, according to the Turkish central bank. However, the central bank believes that this could cause ‘unrepairable’ damage for both customers and sellers, due to the risks mentioned. The use of cryptocurrency as a means of payment would also ensure that customers and companies gain less trust in Turkish payment systems.

The authority has therefore chosen to ban the use of all cryptocurrency as a means of payment in Turkey. According to Reuters, cryptocurrency in Turkey has become increasingly popular recently, due to the depreciation of the Turkish lira and inflation. In March inflation in Turkey rose to 16 percent.