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Turkey bans use of cryptocurrencies for payments

reuters.com

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Re: Turkey bans use of cryptocurrencies for payments

#61

Post by TicklishTiger »

nly wrote: post #26
maeln wrote: post #2

For context: Turkey has been facing an several year long financial crisis with the Turkish Lira plummeting in value. Erdoğan has done nothing good to solve the crisis and is just firing the central bank administrator one after the other. The central bank has brought so much lira with its foreign currency reserve to try to maintain the price that it is almost running dry of any foreign currency, making the future look…

Could be heading to much higher central bank rates there soon then? Historical context: https://tradingeconomics.com/turkey/interest-rate

Is that the interest rate at which the turkish central bank lends out money?

Re: Turkey bans use of cryptocurrencies for payments

#62

Post by tim333 »

vbezhenar wrote: post #10
maeln wrote: post #2

For context: Turkey has been facing an several year long financial crisis with the Turkish Lira plummeting in value. Erdoğan has done nothing good to solve the crisis and is just firing the central bank administrator one after the other. The central bank has brought so much lira with its foreign currency reserve to try to maintain the price that it is almost running dry of any foreign currency, making the future look…

The first thing would be to ban free exchange of foreign currencies. But that would be hard to do in the tourist country.

Lots of 3rd world countries allow tourists to change hard currency to local money but not the other way around.

It seldom works very well though in terms of bringing prosperity to the country.

Re: Turkey bans use of cryptocurrencies for payments

#63

Post by o_p »

This shows how scared goverments are. And its a great way for the people to put pressure in their goverments, get your sh*t together or Im not trusting you with my money, when people deem bitcoin more stable than your local currency you know things are pretty bad.

Re: Turkey bans use of cryptocurrencies for payments

#64

Post by ben_w »

rawtxapp wrote: post #27
dandanua wrote: post #16

Earlier quoted context omitted.

Yeah, let's destroy financial systems of governments and substitute it with a system that has 7 tps cap in which the majority of coins belongs to unknown entities (supposedly of criminal origin).

So you don't think it's valuable to give people power over their incompetent government? 7tps on the base layer, you're ignoring layer 2s and all other places where you can exchange crypto without it being recorded on the blockchain, as a matter of fact, unless you're buying directly from a miner, the single transaction that you use to put it in your wallet actually corresponds to many other transactions elsewhere. >…

> Do you really trust that your gov and the politicians/bankers have your best interest at heart?

On a scale of 0-1, representing my estimate of P(no catastrophic economic/valuation failure in any given year), my trust is: {Government (German): 0.99, Government (UK): 0.85, Politicians (UK): 0.67, Bankers (collectively and internationally): 0.95, BTC: 0.15, Cryptocurrencies in general: 0.05}.

> you're ignoring layer 2s and all other places where you can exchange crypto without it being recorded on the blockchain,

Thus negating all the so-called benefits of the Blockchain, but without the benefits of a double-entry bookkeeping database audited by professionals and with public liability insurance.

Re: Turkey bans use of cryptocurrencies for payments

#65

Post by mrtksn »

nly wrote: post #26
maeln wrote: post #2

For context: Turkey has been facing an several year long financial crisis with the Turkish Lira plummeting in value. Erdoğan has done nothing good to solve the crisis and is just firing the central bank administrator one after the other. The central bank has brought so much lira with its foreign currency reserve to try to maintain the price that it is almost running dry of any foreign currency, making the future look…

Could be heading to much higher central bank rates there soon then? Historical context: https://tradingeconomics.com/turkey/interest-rate

See, Erdogan has this unorthodox economical theory that if you lower the interest rates, the inflation will decrease and the Turkish lira will stabilize.

The last central bank head was fired after increasing the rates. Erdogan consistently installed figureheads to high ranking positions to implement his theories and those who failed at it were swiftly removed.

The previous Ministry of Treasury and Finance is married to his daughter, for example. The new governor of the central bank is a low grade academician who was paddling Erdogan’s theories in his column at a pro-Erdogan newspaper.

Turkey is that close to become Turkmenistan. Turkmenistan at least has gorgeous horse statues.

Re: Turkey bans use of cryptocurrencies for payments

#66

Post by cblconfederate »

dandanua wrote: post #16
fisf wrote: post #7

Earlier quoted context omitted.

Basically one of the exact reasons why Crypto should exist.

Yeah, let's destroy financial systems of governments and substitute it with a system that has 7 tps cap in which the majority of coins belongs to unknown entities (supposedly of criminal origin).

governments are pretty good at destroying financial systems as well

Re: Turkey bans use of cryptocurrencies for payments

#67

Post by ORioN63 »

tsss wrote: post #23
vbezhenar wrote: post #10

Earlier quoted context omitted.

The first thing would be to ban free exchange of foreign currencies. But that would be hard to do in the tourist country.

After turning the country into a dictatorship, regularly arresting and torturing foreign tourists, and now corona, I doubt that there are any tourists left at all.

Source?

I couldn't find anything regarding arresting and torturing foreign tourists.

Re: Turkey bans use of cryptocurrencies for payments

#68

Post by neilwilson »

maeln wrote: post #2

For context: Turkey has been facing an several year long financial crisis with the Turkish Lira plummeting in value. Erdoğan has done nothing good to solve the crisis and is just firing the central bank administrator one after the other. The central bank has brought so much lira with its foreign currency reserve to try to maintain the price that it is almost running dry of any foreign currency, making the future look…

"The central bank has brought so much lira with its foreign currency reserve to try to maintain the price that it is almost running dry of any foreign currency, making the future look even bleaker."

All it needs to do is stop doing that and make it clear to the market that it will no longer do that. That removes the patsy from the market and the currency will find its level.

What you have to do is make lira scarce. And you do that by putting taxes up, stop paying interest on lira savings, and putting into administration any firm borrowing in foreign currency but earning in lira, and then refinancing them with lira loans.

All of which is the precise opposite of the view suggested by the "Washington Consensus".

Unfortunately Erdogan is a sound finance guy. Like Putin he thinks money is gold coins and that we're playing some D&D game.

He needs to understand its about the flow of money, not the stock. People holding savings in Gold, Crypto or dollars is a benefit to the lira economy, since it means lira will flow more freely and rapidly increasing economic velocity.

Re: Turkey bans use of cryptocurrencies for payments

#69

Post by africanboy »

fisf wrote: post #7
maeln wrote: post #2

For context: Turkey has been facing an several year long financial crisis with the Turkish Lira plummeting in value. Erdoğan has done nothing good to solve the crisis and is just firing the central bank administrator one after the other. The central bank has brought so much lira with its foreign currency reserve to try to maintain the price that it is almost running dry of any foreign currency, making the future look…

Basically one of the exact reasons why Crypto should exist.

or why they won't work to solve this kind of issues

Re: Turkey bans use of cryptocurrencies for payments

#70

Post by simonh »

m12k wrote: post #41
dangerlibrary wrote: post #32

Earlier quoted context omitted.

In fairness, "the majority of coins belong to unknown entities (supposedly of criminal origin)" is only a small rephrasing away from a description of Erdogan's government / political party [0]. And they are scarier for Turkish citizens than BTC, since he also aggressively punishes dissent and is a de-facto dictator [1]. [0] https://en.wikipedia.org/wiki/2013_corruption_scandal_in_Tur... [1] https://en.wikipedia.org/w…

Sure, but the fact that Turkey is becoming increasingly corrupt isn't really a good argument why it would be a good idea to take away the ability of all central banks to perform monetary policy to stabilize the economy.

If corruption isn’t a good argument for keeping your money out of a system, what is? Giving them more of your money isn’t going to make them less corrupt.
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