As the Turkish lira faces yet another decline, some residents of Turkey are finding refuge in the cryptocurrency market, particularly in the stablecoin USDT. The country’s economic instability and fears of severe inflation have reignited interest in digital currencies, despite political skepticism towards them.

The Turkish lira has been on a downward trend in recent years, which intensified following Recep Erdogan’s re-election as the country’s political leader. Erdogan has expressed strong criticism of digital currencies, while his opponent Kemal Kilicdaroglu held pro-crypto views. The outcome of the election saw Erdogan secure 52% of the votes.

Shift towards USDT

According to Bloomberg, Turkish residents shifted their focus towards USDT, the largest stablecoin by market capitalization, ahead of the presidential elections. Surprisingly, this interest has continued even after Erdogan’s victory. The deteriorating value of the national currency, which recently hit a record low against the US dollar, has likely prompted this shift.

USDT has emerged as a safe haven for some Turkish citizens seeking to preserve their wealth amidst the worrisome inflationary environment. With a consistent peg to the US dollar, USDT provides a relatively secure and straightforward way for Turks to participate in the cryptocurrency sector.

Regulatory Restrictions and Crypto Appeal

Domestic regulators in Turkey have imposed restrictions on purchasing dollars and gold with the lira, further boosting the status of cryptocurrencies. Investing in stablecoins, such as USDT, allows individuals to retain the value of their wealth during periods of high inflation. This motivates people to turn to stablecoins as a means of safeguarding their assets.

Concerned about the lira’s condition, some Turkish residents have converted their savings into cryptocurrencies. For example, a 28-year-old graphic designer, Batuhan Basoglu, decided to purchase Tether (USDT) as a way to hedge against the uncertainties surrounding the currency’s future.

The post Turkey Residents Turn to Crypto Amid Another Lira Collapse appeared first on Crypto Academy.

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Filed under: Bitcoin - @ June 14, 2023 12:07 am