Turkish President: Türkiye is at “war” with cryptocurrencies

On September 19, Turkish President Recep Tayyip Erdogan said during a meeting with students in Mersin that Türkiye is “at war” with cryptocurrencies.

The Turkish central bank banned cryptocurrency payments in mid-April, meaning local companies are not allowed to conduct transactions involving crypto assets. Regulatory uncertainty, extremely high volatility and crime are considered key reasons behind this decision.

Erdogan claimed that Türkiye “absolutely” does not have a problem with the proliferation of digital assets. The president also added that Türkiye will continue to use its own currency and considers it part of the national identity.

Just a few days ago, the Central Bank of Turkey said it had established a collaborative platform for digital Turkish lira (Turkish lira is Turkey's legal currency) to expand research on the potential benefits of digital currency. The central bank said it signed a separate memorandum of understanding with Turkey's HAVELSAN, ASELSAN and TUBITAK-BILGEM on the platform to conduct research, development and testing of the digital Turkish lira. The Central Bank of Turkey said it has not yet made a final decision on the digital Turkish lira, and the results of the first phase of pilot research will be announced in 2022.