Rising inflation is affecting Turkish residents‘ confidence in the national currency: according to a recent article published by Reuters, the local population is converting the Turkish lira into dollars and gold.
Bitcoin price reached new all-time high against Turkish lira
Despite market interventions and reassuring stories about the government’s monetary stability, confidence in the Turkish lira is falling dramatically. Inflation is currently at 11.8%, exceeding the interest offered by savings in banks. One citizen, interviewed by Reuters, claims to have bought gold as a safe haven asset:
„I think it’s the best investment right now, so I turned my dollars into gold. I could withdraw my lira and buy more gold, but right now I’m afraid to go to the bank for the coronavirus.
A massive sale of the Turkish lira is expected if the government fails to renew confidence in the national currency, which has fallen by nearly 20 per cent this year.
A new survey denies that Turkey is a global leader in the adoption of cryptomoney
The popularity of cryptomonies is steadily increasing
The Turkish economy is highly dependent on imports. The pandemic froze logistical chains, worsening inflation and potentially causing a payment crisis, which would further weaken the local currency.
In recent months, national currencies around the world have lost value due to inflation, increasing interest in Bitcoin Evolution: recently, the capitalization of the kryptom currency surpassed Bank of America’s valuation and almost reached that of PayPal.
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In July of this year, the Turkish exchange BtcTurk conducted a survey in collaboration with the Istanbul University Research and Statistical Appliances Center: it found that, during the COVID-19 pandemic, confidence in Bitcoin increased by 23%, and the satisfaction level was 58.5%.
From February 2019 to date, the use of cryptomonies in Turkey has doubled.