Turkey prohibits payments with Bitcoin

The use of digital money is severely restricted in Turkey because it supposedly causes irreparable damage. The main reason for the payment ban is likely to be the weakness of the local currency, the lira.

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Dhe Turkish central bank forbids payments with Bitcoin and other cryptocurrencies. Trading in digital currencies and paying with them may lead to “irreparable” damage, the agency said on Friday. Recently, more and more businesses in Turkey had accepted cryptocurrencies as a means of payment.

The new regulation prohibits payment processors from making transfers in crypto currencies. Holding digital currencies, on the other hand, does not seem to be affected by the ban.

A Bitcoin then fell by around three percent to $ 61,490. The course has been chasing from one record to the next in the past few months and many experts are warning of a bubble. Shares in companies that deal with cryptocurrencies also came under pressure.

Weak lira

The central bank wrote in its official gazette that the new rule, which will apply from the end of April, will affect direct and indirect payments with Bitcoin and other cryptocurrencies. Cryptocurrencies are not subject to any regulation or supervision by a central bank and therefore have high risks.

The use of digital money could lead to losses for consumers and retailers. In addition, the central bank is concerned that the Turkish lira will come under further pressure from cyber currencies. It has lost a lot of its value in recent years.

The payment ban comes at a time when the Turkish national currency, the lira, is weak and inflation in the country is high. Crypto fans also see digital systems such as Bitcoin or Ether as a hedge against currency weakness and monetary devaluation.

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To the detailed view

A few days ago, the car dealer Royal Motors, which sells the luxury brands Rolls-Royce and Lotus in Turkey, accepted Bitcoin as a means of payment. Worldwide, Apple, Amazon and the online travel company Expedia have been ready for a while. The electric car manufacturer Tesla also accepts cryptocurrencies for payments.