Turkey Bans Payment With Cryptocurrencies
Turkey’s central bank on Friday, 16th April, banned the use of cryptocurrencies such as bitcoin for purchases, buying and selling, citing transaction risks.
In a legislation published in the official Gazette, the Central Bank said the ban would begin as of April 30.
The new regulation prohibits the transfer of cryptocurrencies for purchases or services.
The central bank also stated that the ban was needed because of the “significant risks” linked with cryptocurrencies.
The bank further said these risks include a lack of regulation and supervision, “non-recoverable” losses for the parties to the transactions, and possible use for illegal purposes.
The payment ban comes at a time when lira remains weak and inflation stubbornly high in Turkey.
Cryptocurrency fans consider digital tender such as bitcoin or ether as a hedge against currency weakness and devaluation.
