As the value of Turkey’s currency (the Turkish lira) continues to sea-saw, Turks are shifting their savings to more stable assets, including cryptocurrencies.
What’s happening in Turkey? The lira has been having a hard time since last year. As of December 2021, the Turkish lira was at a 36.08% inflation rate, from 14% in January. Reuters reports that there were days where it would rise and fall by 10% in less than 48 hours.
The country’s central bank admitted that many of the citizens have converted their savings to more stable currencies like USD and assets like gold. Reports also indicate a rise in crypto investments. Turkey’s crypto trades were at 1 million per day as of December 2021.
Reports indicate that Bitcoin and stablecoin Tether have been most popular for lira trades since 2019.
Turkey is one of many: Though investors and large institutions are credited for driving Bitcoin’s mainstream adaption, analysts have observed that crypto trading is popular in countries like Nigeria, Venezuela, Zimbabwe, etc., where the inflation rate is high and trust in governance.
- Despite its volatility, Bitcoin offers a lifeline where people have lost trust in their local currencies.
- For people who seek no volatility, stablecoins offer an alternative. They are crypto typically pegged to a more stable currency like the US Dollar, or assets like gold, in order to eliminate changeability.
Where to begin: People from countries like Nigeria, whose banking systems or governments are not crypto-friendly, often transact with crypto through P2P platforms. To avoid getting scammed, it’s best to do this through trusted international crypto exchange platforms like Paxful and Remitano, or exchanges in your country.
