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Bitcoin is declining after Turkey blocks cryptocurrency payments

Bitcoin is declining after Turkey blocks cryptocurrency payments

Reuters. – On Friday, the value of Bitcoin drops by more than 4%, after the Turkish Central Bank banned the use of cryptocurrencies and assets in digital currency to make purchases, indicating the possibility of damage and “irreparable” risks in transactions, in a drastically unusual situation in the face of the hypothetical market.

In a law published Friday in the country’s official gazette, the central bank said that cryptocurrencies and other digital assets based on the distribution of more advanced technology cannot be used, directly or indirectly, to pay for food and services.

The decision may hinder the cryptocurrency market in Turkey, which has gained momentum in recent months as investors joined the global return of bitcoin, looking to counter the devaluation of the lira and inflation that reached 16% last month.

Bitcoin lost 4.67%, to $ 60,466.06, at 6:34 AM ET, after the veto was known, which was criticized by the main Turkish opposition party. Other cryptocurrencies like Ethereum and XRP, which tend to interact en masse, fell between 5% and 8%.

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In its statement, the central bank said that digital assets “are not subject to any regulation or supervisory mechanisms of any central regulatory authority,” among the other mentioned risks.

Royal Motors, which distributes Rolls-Royce and Lotus cars in Turkey this week, has become the first in the country to accept cryptocurrency payments.

In any case, cryptocurrencies continue to be used little in local commerce, as they are becoming increasingly popular among global industries, after Apple, Amazon and Expedia began accepting them as a method of payment.

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Strict regulatory measures on cryptocurrencies are rare in the world and most major economies have tried to clarify the regulations. Traders say veto power like veto power in Turkey is difficult to enforce as markets ignore past rules.

The volume of cryptocurrency trading in Turkey reached 218 billion liras ($ 27 billion) from the beginning of February to March 24, up from just over 7 billion liras in the same period in 2020, according to data from the company.

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