According to recent research that was conducted by Statista, an advanced analytics software package originally designed by StatSoft, it indicates that Turkey is the country with the highest percentage of citizens with crypto-based assets and investment, having consulted about 15,000 individuals for the review.
Based on the released research report, it can be deduced that 18 percent of the country’s investors delved into the fast-growing market of digital currencies and have acquired crypto assets such as Bitcoin, Ehereum, etc. in a couple of years.
Why Invest in Digital Currency?
The Turkish Government undeniably was ushered into the month of August by the United State government’s imposition of additional sanctions which has almost crippled its economy. This imposition has excluded the region from the global banking system operated by SWIFT in Belgium. Consequent upon this, the country’s fiat currency, the Lira, has dropped by over 50 percent against the United States Dollar.
It was earlier reported in August, that the country’s economic stakeholders were not finding this imposition favorable as losses are being incurred massively in their holdings in the country’s fiat currency which is owing to the conflict between Turkey and the United States. This has further worsened by the Turkish authorities’ refusal to release Andrew Brunson whose health has reportedly deteriorated and moved to house arrest in July.
The existing capital controls by the Turkish government and measures to prevent converting the Lira to other reserve currencies such as the USD, merchants in the country are experiencing a tough time liquidating their holdings in the country’ fiat currency. A certain retiree Sevin Temur, who is 58-years old, was interviewed and he stated that;
“I have respect for our president, but I can’t sell my gold and foreign currency just because he made that call. I’ve cut down on food for those savings.”
Economically speaking, any currency, be it fiat currency or consensus currency, is as much of a value as its ability to function as a means of exchange successfully. If the liquidity of such money is relatively low and holders find it difficult for a central party from being able to convert it to other currencies, then the value of the currency should be doubted.
The control and domination by the Turkish government over its fiat currency have gradually eliminated financial independence from its population, and this has resulted into a skyrocket in the demand of digital currencies by indigenous merchants, individuals as well as enterprises.
Will this Trend Last?
Earlier this week, it was reported that one of Europe’s largest economy, Germany, revealed its intention to establish a financial system which is entirely free from the whims and caprices of the United States. This measure by Germany is in light of Iran and the U.S issues and to further prevent history from repeating itself.
A couple of years now, the United States has capitalized on the SWIFT banking system and using it as a tool to “deal” with countries like Iran and Turkey by excluding them from the global financial system. Heiko Maas, German foreign minister serving in the fourth cabinet of Angela Merkel since March of this year, succinctly stated in response that;
“For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the US, creating a European Monetary Fund and building up an independent Swift system.”
Desperate times they say, calls for desperate measures, it is exigent to state that the growing list of countries calling for the establishment of an independent financial system can be an avenue for the cryptocurrency (as anti-censorship and decentralized financial system) to appeal to a wide range of new customers who have been frustrated by the traditional method.