Turkey President Announces a Cryptocurrency Bill, Speaks of a New Economic Model

Santa Claus could be granting the wishes of Turkish cryptocurrency enthusiasts as the country embarks on a revolutionary change in its cryptocurrency policy.

Turkey's President Recep Tayyip Erdoğan said at a press conference today that he hoped the nation would leap forward with a new economic model and would as a first step touch the crypto industry by creating a law to promote its use. legal in the country.

Turkey's president talks about a new economic model

The President of Turkey highlighted his interest in the topic of cryptocurrencies. He explained that your staff has a Crypto Bill ready to be sent to Congress for discussion as soon as possible.

“We will take action on this issue by sending (the bill) to Parliament without delay. Turkey will take a leap forward with its new economic model. These risks are worth taking. "

The draft is not yet publicly available and the President of Turkey did not provide further details on its content; However, one of the key points of the bill seems to focus on the central bank's role as the regulatory body for cryptocurrency transactions, its safe custody.

"Citizens will know that their money is guaranteed by the central bank, the guarantor of the country's treasury"

In other words, although the adoption of Bitcoin as legal tender or payment currency is not mentioned, it does open a window to a possible crypto-based banking services industry.

This is of particular importance in light of the recent collapse of two major cryptocurrency exchanges: Thodex and Vebitcoin

A (not so) surprising cryptocurrency bill

Turkey's decision comes as a surprise, as the country hasn't exactly been crypto-friendly in the past.

In September 2021, President Erdogan himself commented at a press conference that, although he did not rule out softening the country's stance on cryptocurrencies, he did not actually intend to promote their adoption.

These comments are quite in line with the position of the Central Bank of Turkey, which announced a measure to ban the use of cryptocurrencies as a means of payment for the purchase of goods in April of this year. The text of the ban was clear and even warned of irrevocable damage for those who decided to risk using cryptocurrencies:

"Payment service providers will not be able to develop business models so that crypto assets are used directly or indirectly in the provision of payment services and issuance of electronic money."

However, the other side of the coin shows an economic reality that could justify the change of stache of the Turkish government. The country's fiat currency has suffered one of the worst devaluations in its history and, despite the government's efforts to promote the use of the lira and restrict the adoption of the dollar and the use of cryptocurrencies as a proxy for U.S. fiat currency, the Turks continue. exchange your lira for cryptocurrencies more and more frequently every day.

And considering that diplomatic relations with the United States are not at their best, using a decentralized alternative to improve the economy might not be such a “surprising” idea after all.