Turkey bans bitcoin and other cryptocurrencies as a means of payment

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Turkey bans bitcoin and other cryptocurrencies as a means of payment, Purchases of, for example, cars or holidays may not be settled with cryptocurrency in Turkey, the Turkish central bank announced on Friday. According to the regulator, bitcoins and other digital currencies cause transaction risks and irreparable damage. The price of the bitcoin immediately plunged a few percent after the news.

The central bank said the coins should not be used as a means of payment, either directly or indirectly. “Cryptocurrencies are not subject to legislation or oversight mechanisms. There is also no authority that keeps control over it,” reads an explanation. “In addition, it can undermine confidence in current means of payment.”

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In recent months, investing in bitcoins in Turkey has become increasingly popular. This was partly because the currency unit of the country, the lira, has lost a lot of value. Last month, for example, the currency lost 16 percent of its value. By investing in digital currencies, Turks want to prevent their assets from becoming less valuable as a result of inflation.

Worldwide, digital coins are becoming more and more accepted. For example, the number of companies that accept bitcoins as a means of payment is increasing; Apple, Expedia and Tesla, among others, do that. There are also more and more regulations in various countries to steer the trade in and use of digital coins in the right direction.