Turkish President Erdoğan declares, “We are at war with crypto”. Turkey is eager to become a blockchain hub. However, as Turkish President Recep Tayyib Erdoğan recently stated, the same enthusiasm does not exist for cryptocurrencies.
The Turkish government’s cryptocurrency plans are diametrically opposed to the central bank’s digital currency intentions.
In Mersin, Turkey, Erdogan hosted a question-and-answer session with students from throughout the country. A participant inquired if the central bank will welcome cryptocurrencies, referring to the Digital Turkish Lira Collaboration Platform unveiled last week. He also inquired about Erdoğan’s thoughts on cryptocurrency.
“We have no intention of adopting cryptocurrencies. On the contrary, we have a defensive fight, a separate war against them. Cryptocurrencies would never receive our backing. We will move forward with our own money, which will have its own identity.” Said the president
The decision was taken due to the elevate percentage of risk
Following that, Binali Yldrm, Turkey’s former prime minister and vice-chairperson of the Ak Party, explained that cryptocurrencies require tight regulation due to the risks they pose. He described it as “a sale of a fictive future.”
The Turkish central bank is collaborating with local technology firms on digital currency research and development.
By establishing the Digital Turkish Lira Collaboration Platform with three local technology companies, the Central Bank of the Republic of Turkey took a significant step toward its CBDC goals.
In 2019, Turkey announced plans for a national blockchain infrastructure for the first time. Since then, the government and local governments have embraced blockchain technology. The government revealed plans for a central bank digital currency (CBDC), with testing scheduled for late 2021.
Even so, President Erdoğan’s recent comments on cryptocurrencies signify the end of Turkey’s crypto-friendly era, during which several global crypto exchanges, including Binance and Huobi, established operations in the country.