On May 28, the Election Commission of Turkey announced that Recep Tayyip Erdogan is elected as the president of Turkey for another term till 2028. After the announcement, Lira, the local currency, has fallen against the dollar. According to reports, the Turkish Lira dropped down by 20% after Erdogan was re-elected.
A major economic turmoil is currently brewing up in Turkey as it is facing rampant inflation rates. The inflation rate in Turkey is currently around 44%, but it jumped to 85% in October 2022. The current Turkish President remained very reluctant towards cryptocurrencies and took an anti-crypto stand in his policies. However, a recent study revealed that the citizens of Turkey show completely divergent views from their leader. According to the survey, the Netherlands and Turkey have the highest search volume for terms connected to cryptocurrencies, with 8.2% and 5.5% of their respective populations, respectively.
As inflation soaring up in Turkey more people will move towards cryptocurrency adoption and to store the assets in Bitcoin and others. For those who are not aware, Turkey banned cryptocurrency payments in 2021, but as the Lira drops, people are still looking for an economic life raft. And, after the return of Erdogan to power again it seems there will be immediate relief in terms of crypto policy leverage will be provided.
Turkey has remained very active in blockchain and cryptocurrency adoption because its trend is going beyond simple market trends. Currently, there are no concrete regulations present to fulfill the needs of the ecosystem. Several crypto journalists have shared their concerns regarding this matter.
According to economist and writer Erkan Oz, blockchain firms and initiatives have not yet fully benefited from the acceptance of cryptocurrencies. He attributes the adoption rates of crypto to the hyper-inflationary situation in Turkey, thereby implying that people use crypto as an inflation hedge. As rampant inflation causes serious problems in the country and the presidency of Recep Tayyip Erdogan, who remained very critical towards cryptocurrency adoption, it will be exciting to see what measures will be taken to tackle these problems.