Crypto Trading Volumes In Turkey Surge As Local Currency Crashes

The crypto trading volumes in Turkey surge to more than a million trades per day as the Lira falls to a record low as we can see more today in our latest cryptocurrency news today.

The million trades per day goal were recorded by blockchain analysis firm Chainalysis and Kaiko. The Rampant inflation and the currency devaluing by about 40% since September whcih resulted in the citizens pouring their money into crypto to preserve their savings. According to Reuters, the surge in crypto trading volumes came earlier this year when the central bank chief was replaced which essentially triggered the first Lira crash.

Crypto in Turkey 🇹🇷 Is It A Nightmare😳

Over 16% of the world's crypto users came from Turkey.
Turkey occupied the fourth position for the most number of users. 😳 https://t.co/EqWpYHrJhj pic.twitter.com/8Op46uwsaz

— CoinMarketCap (@CoinMarketCap) December 21, 2021

People in Turkey were converting Lira into USD or gold as the currency lost 90% of its value since 2008. the decentralized crypto-assets became another option to protect against the economic turmoil so Bitcoin and Tether were the most popular trades against the Lira for the past few years. At the time of writing, $1 was worth 12.37 Lira and at the start of the year was worth 7.37 Lira. The currency crashed to 18 Lira to the dollar in December. According to CoinMarketCap, more than 16% of the world’s crypto users came from Turkey which occupied the fourth position for the bigger number of users.

However, a number of Turkish crypto traders replied that the video was misleading and that crypto trading is not really banned in the country because all exchanges are in operation and it is very easy to cash out. The reports from Reuters show that the central bank banned crypto for payments back in April and in September we saw Turkey’s deputy finance minister saying that the regulations on the asset class will be introduced. The Wall Street Journal reported that the president of Turkey announced a rescue plan hoping to encourage the Turks to put their money back into the failing currency which resulted in the strengthening of the Lira but it has lost half of the value against the dollar since the start of the year.

The government stated that it will guarantee returns on Lira deposits at similar rates for everyone on foreign currencies. Turks would have to deposit Lira in fixed accounts at a minimum interest rate but the state will make up the difference that it lost against the dollar. The government didn’t specify how it will pay for the incentive but economists suggested that the central bank will continue printing money. The total market cap gained 4.7% over the past day and reached $2.4 trillion which is why it is likely that Turkish trading could have some influence on the rise.