According to a report from Daily Sabbah, detailed information was given about the discussion held by the President of Turkey (Tayyip Erdogan) and the ruling party. An instruction was given to the members of the Justice and Development party to make research on the advantages of the Bitcoin blockchain and its implication in the future.
Prior to this, the President once spoke openly against cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Despite the high demand for crypto in the country, he reported they will never follow the steps laid down by Cuba and El Salvador. Instead, a digital lira was created on the Digital Turkish Lira Collaboration Platform to satisfy the increasing interest of the people in crypto.
The platform was launched by The Central Bank Republic of Turkey (CBRT) and the idea of having a digital lira came up in early 2021. Turkey joined the global race of Central Bank Digital Currency (CBDC) as it gained attention across the world. This was the only way they had to achieve a digital economy. As a major project for the Turkish authorities, a lot of money was pumped into it to ensure its adoption in the future.
However, cryptocurrency trading has become very popular due to the poor performance of the Lira. There was a dramatic drop in its price due to cuts in the interest rate and high price decline in price was also caused by the replacement of Naci Ağbal (Central Bank Chief) with Şahap Kavcıoğlu. According to a report by Reuters, transactions in cryptocurrency now go beyond 1 million daily.
Table of Contents
Turkey’s ban on cryptocurrency
On the 16th of April, the use of cryptocurrencies and crypto-assets was banned for purchase due to permanent damage caused and transaction risks. This caused a four-percent decline in bitcoin’s price and a greater decline in altcoin’s price. Aside from Turkey, countries like India and China have placed similar bans on crypto before.
According to a report, the central bank spoke against the use of digital assets and cryptocurrency to purchase goods and services directly or indirectly. They concluded there are security risks as there is no form of supervision or any regulations as it operates under a decentralized system.
The decision wasn’t welcomed by people who save their money through cryptocurrency against the rising rate of inflation. The ban became effective on the 30th of April. Surprisingly, the president has announced his interest in the development of cryptocurrency and metaverse. With the site situation of things, the Central bank might be getting ready to lift its ban
Turkey using Metaverse
The metaverse can be regarded as the future of the internet. It is a concept of an online 3D universe thus bringing users together in a virtual space. In this space, users can meet, play games, socialize and work. Extending physical activities to the dual world would enhance people’s physical activities. A VP analysis at Gatner, Marty Resnick predicted that people would spend nothing less than 1 hour in the metaverse by 2026.
Many investors are jumping on the opportunities given by Metaverse as they are buying plots and land in the virtual world. Last year, $2.4 million was used central and land in the decentraland. This was recorded as the most expensive sale as the Metaverse is rapidly growing in the country.
According to a report, there have been thousands of purchases in Turkey’s virtual district. Locations such as the ancient capital of Istanbul have been highly purchased on the metaverse platform. Tayyip Erdogan wouldn’t want foreigners to dominate the land and assets as it might be a problem for the country.
The ruling party was ordered by the President to arrange a forum, giving details concerning how the metaverse works. In addition, how transactions are being carried out on cryptocurrency using social media should also be examined. The first meeting held in the metaverse a week ago by the party members showed their agreement with the President of the General Assembly of the Turkish Parliament. Mustapha Elitas believes there would be a rapid improvement in meetings held in the metaverse. As other cryptocurrency legislation was discussed, he concluded that these meetings would become vital to their lives.