Turkey bans the use of Bitcoin for payments, but it could be counterproductive

Turkey bans the use of Bitcoin for payments, but it could be counterproductive - TurkeyThe cryptocurrency ban in Turkey has already sparked resistance from a rebellious crowd. To assume that the rebellion is temporary is to underestimate the need for cryptocurrencies in people's lives. As we have seen previously, the ban on cryptocurrencies has always resulted in a strong protest from those concerned. As such, the Turkish government may need to prepare for the weeks ahead as citizens peek for a loophole.

Turkey bans citizens from using cryptocurrencies

Turkey officially banned cryptocurrencies on April 16. Turkey's central bank has issued an official statement calling on citizens to refrain from using digital currencies to purchase goods and services in the country. Extracts from the legislation published in the Official Gazette are read;

"Payment service providers will not be able to develop business models in such a way that cryptographic assets are used directly or indirectly in providing payment services and issuing e-money, and they will not be able to provide any service relating to these business models ".

The weakening of the Turkish lira has led citizens to turn to cryptocurrencies such as Bitcoin, in search of a hedge against inflation. Many cited this as a driving factor behind the ban, speculating that the Turkish government may have been acting out of fear. But a Central Bank statement contradicts this view, at least enough to serve as a credible reason behind the actions of governments for some.

The Turkish government believes that their use may cause losses that cannot be recovered due to the above factors. And this could undermine the trust that the safest payment methods currently have. What the bank expressed in a statement.

Turkey could lose large companies to other Crypto-friendly countries 

Whether the bank statement is an alibi or not, one thing is almost certain; Turkey will lose citizens and large businesses to other countries in the months to come. PlanB, the founder of the Bitcoin Stock to Flow model, quickly backtracked on his plans to enter the country.

“I canceled my sailing vacation in Turkey. If this is how the Turkish government treats property rights and steals from its own citizens ”. He revealed.

Turkish residents appear to be on the same frequency as PlanB, as many have taken to Twitter to establish their plans to leave the country, if that's the only way they can stay in the cryptocurrency business.

Turkish annual inflation increased by 16% in March. With the lira falling, investors and large corporations could leave the country's economy. PlanB notes this in the second part of his tweet; “I can only imagine how the Turkish government treats tourists (especially tourists who hold BTC! Airport checks, etc.). Brains and capital will leave Turkey ”.