There are many countries in Sub-Saharan Africa, South America, and South-East Asia where people are interested in using cryptocurrencies because they are losing faith in fiat and their national economies. One of the biggest advantages of decentralized cryptocurrencies is that they can, at least in theory, preserve value even amidst economic turmoil.
Now, Turkey is joining the list of countries where locals may start using crypto just to avoid the fallout of the economic collapse that seems near-inevitable at this stage.
What is happening in Turkey right now?
In August, the inflation in Turkey hit a very high level with a 55% increase year to year. Many people were making fun of the country’s failing Lira. Just two years ago you could buy a brand-new Volkswagen Golf II for the same amount of money that now you need to pay for an iPhone 14. It was a dumpster fire of bad monetary policies, corruption, and other issues that eventually led to a critical situation in the national economy.
News stories from the country have been full of depressing connotations. However, many believed that the country hit the bottom at 55% inflation. A month passes by and Turkey has over 100% inflation, a real threat of going to war with Greece, and the head of the national Central Bank is being fired despite trying to do everything in his power to prevent the catastrophe.
The decision to lower interest rates can be a devastating one in the nearest future. Even if the country manages to reduce inflation, there is no way to recover from the pit the government is digging right now by failing to stimulate the economy and provide the necessary conditions for the people to trust in their national fiat currency.
Cryptocurrencies are on the rise in Turkey
While such developments are never a good thing, the crypto community is expanding thanks to the mishandling of the Turkish economy without thousands of people from that nation coming to crypto exchanges and buying stablecoins and BTC. Trading volumes have been growing since May and now reached their peak.
