Turkey's central bank has banned the use of cryptocurrencies in payments, saying these carry significant risks due to volatile exchange rates. Turkey's central bank has banned cryptocurrency payments The bank conveyed that cryptocurrencies were "not subject to any regulatory and supervisory mechanisms or central regulatory authority." The official statement added that a "regulation on not using cryptocurrencies in payments" was issued. The move comes after months of economic turmoil culminating in the resignation of the central bank governor. The announcement added that cryptocurrencies: are not subject to any regulatory or supervisory mechanism or central regulator, have market values that may be excessively volatile, may be used in illegal activities due to their anonymous structure, may be stolen or used illegally without the consent of their holders. Turkey's problems The country's central bank has struggled to control the fall of the lira in recent months and in yesterday's announcement it decided to keep interest rates at sky-high levels as high as 19%. The situation is not improved by politicians. President Erdogan's decision to appoint a new bank president last month has raised concerns among investors that Turkey will maintain too loose a monetary policy in the face of accelerating inflation and a weak lira. Other countries have already banned cryptocurrencies from payments, including Russia and China. The Middle Kingdom decided to do so back in 2017. How has the cryptocurrency community reacted to the issue? Prominent investor Anthony Pompliano wrote that Bitcoin (BTC) was "winning in a free market, so governments and central banks are trying to rig the rules of the game." - This is irrelevant. Adoption continues unabated in these countries," he added. Entrepreneur Jeff Booth said that "there's no better signal that you need Bitcoin than central banks trying to ban it." He added: "My bet is that adoption is accelerating." Some experts and market watchers have long speculated that attacks on cryptocurrencies will become more frequent in countries with "weaker" fiat currencies. It's not hard to see Turkey's new decision as an act of desperation as the lira continues its downward trend. Tags bitcoin btc cryptocurrencies payments Turkey turkish central bank
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