Turkey BANS Crypto Payments And Bitcoin Feel The Risks

After the Turkish government implemented a new law banning encrypted currency, many were quick to point out how such a move will hurt the countrys economy.

Not long ago, Cryptocash was one of the fastest growing virtual currencies, second only to the well-known credit card industry.

It allowed its users to use their funds in a hassle-free way without having to convert them into traditional currency first.

Now, as the countrys economy suffers and jobs are lost, many are wondering whether Turkey will be able to survive without Cryptocash.

In a recent interview on CNN, economist and former European Central Bank chief Mario Draghi said that he could not see how the ban would affect the economy. According to him, Turkey is a nation with which the European Union has strong trade agreements. Moreover, he stated that such associations make up for about 90 percent of the economic activity between Turkey and Europe. Furthermore, many of Turkeys major banks have recently signed deals with major financial institutions throughout Europe, including some in London, to execute banking operations using bitcoins and other digital currencies.

As a result of the ban, many citizens are left to exchange their hard-earned dollars for some of the currencies that Turkey has used for years.

Many of them are likely to run into trouble, especially if they accidentally use cash converted from Dollars at casinos or take money out of their accounts at banks. However, even though Turkeys central bank has not lifted the ban, the government has issued a decree banning the use of Cryptocash within the country. This means people will no longer be able to use their digital cash at ATMs or at Turkish banks.

However, this doesnt mean that all is lost. Since Turkey isnt a high-income country like the European Union, many people will find ways around the ban. For example, people may use a ATM abroad to withdraw cash. Alternatively, they can hold on to old banknotes or coins at home until further notice.

On the other hand, there is still a chance that the government will lift the ban when the economic indicators improve. The effects of the measure have already been felt by the Turkish banking system. There will be less demand for foreign currency for transactions and banks will start accepting smaller bills and coins. In addition, the lower transactions costs will help the Turkish economy recover from the global financial crisis. Hence, the measures are being implemented not as a way to hinder growth, but as a preparation for future times when economic conditions improve.

What does this mean for those who want to move money overseas?

If you are from Turkey, you can still transfer funds since there are no restrictions currently in place. Furthermore, it would be advisable to transfer money through companies based in other countries like Switzerland since there are no restrictions yet implemented. This way, you will avoid extra charges and taxes that come with using banks outside the country. Furthermore, some companies will waive transaction fees for those Turkey residents wishing to send funds abroad. Therefore, it is better to transfer your money to friends or family members living in other parts of the world rather than risking penalties.

The reasons why Turkey bans Crypto payments and bitcoin is not entirely clear. However, if you do a quick search over the web, you will find a lot of information concerning the recent developments. One of the reasons why the government introduced the Cryptocurrency Ban is to prevent foreign institutions from facilitating the usage of Cryptocurrencies. According to some sources, the move was prompted by an economic report conducted by a commission which was tasked to investigate the risks associated with Cryptocurrencies. The report was also meant as a gauge to determine if Cryptocurrency is really dangerous for the countrys financial system.

Whatever the reason is, the fact remains that Turkey has now banned both Cryptocurrencies.

This move will definitely affect bitcoins in the long run because according to experts, most of the investors residing in the country are currently using bitcoins to settle their financial transactions. Thus, if you intend to use Cryptocurrency to pay for things online in the near future, you might want to think twice about the countrys decision to ban them.