The Wall Street Journal has reported that crypto embrace is now happening at a rapid pace in Turkey as the local currency Lira becomes volatile and plummets against the USD.
However, in the traditional financial world, cryptocurrencies are thought to be very volatile.
WSJ ： The Turkish lira has become so volatile that Turks have abandoned the local currency for an asset with an even riskier reputation: cryptocurrencies. The Turks are particularly enamored of the stablecoin tether. https://t.co/MgAYX3WOOg
– Wu Blockchain (@WuBlockchain) January 13, 2022
Turks Take BTC and USDT, Despite Crypto Ban
By the end of 2021, Lira (TRY) began to plunge against the USD with Lira-related trading volumes increasing by an average of $1.8 billion per day across three crypto exchanges, according to Chainalysis data. . Back in 2019, the volume was a lot higher — about $71 billion worth of Lira spent on crypto every day.
The Turkish people are especially chasing stablecoin Tether pegged to USD. In the fall, 2,020 more investors traded Lira against USDT than in the TRY/USD and TRY/EUR pairs, according to CryptoCompare.
Since September 2021, the Lira has dropped by as much as 40% against the USD, while Bitcoin is up the same rate against the dollar in early November. Currently, BTC is more than 10% below that level.
While Turks usually save in USD and gold, they are now choosing cryptocurrencies: BTC and Tether.
Turkish investors have started to get involved in cryptocurrencies, despite a law banning the use of digital currencies as a means of payment in April 2021.
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