The central bank of Turkey has banned the use of cryptocurrency as payment for goods and services prompting a 4% dip in the price of Bitcoin.
The legislation on the decision was published in the Official Gazette, saying that cryptocurrency and other digital assets based on a distributed ledger could not be used, directly or indirectly, to pay for goods, services and other transactions.
The central bank made this decision after determining that using Cryptocurrency could cause “possible irreparable damage” and high transaction risks.
Cryptocurrency trading and mining has been gaining popularity in Turkey along with the rest of the world, but the government’s decision to institute a ban could be a measure to curb inflation, which topped 16% in March.
Bitcoin saw a drop of over 4% following the news, while Ethereum and other smaller coins fell anywhere from 6-12% after the news broke.
Cryptocurrency markets have been on the rise recently, particularly Tuesday with the launch of Coinbase’s IPO. Multiple digital currency assets hit record highs this past week, including meme cryptocurrency Dogecoin, which topped the 10 cent mark.
Despite the recent fall in Cryptocurrency markets, investors in the digital currency remain mostly unconcerned, saying that cryptocurrency has overcome bans before. Cryptocurrency is widely held as an asset, but is rarely used as an actual currency system, though companies like Tesla and Expedia have begun accepting crypto as payment.
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