• Turkey’s economic downturn has caused investors to flock to cryptocurrency as a safe haven, especially the popular dollar-backed stablecoin Tether.
• Demand for Tether has surged in early May, with 20% of trading volumes on one of the biggest Turkish crypto exchanges being in Tether compared to 1% on Binance.
• Research shows that Turkey has the highest ownership rate of digital currencies worldwide at 27.1%, signaling a shift towards digital tokens as citizens attempt to protect their wealth.
Turkey’s Economic Struggles
Turkey is currently facing an economic crisis, with its currency lira spiraling downwards and inflation reaching 80%. President Erdogan’s unorthodox economic policies have further exacerbated the situation, causing citizens to become increasingly concerned about their financial stability.
Turning To Stablecoins
In response to these conditions, many investors are turning towards stablecoin cryptocurrencies such as Tether in order to protect their wealth. Tether is currently dominating the Turkish market with its share of trading volumes standing at 20% on BTCTurk compared to just 1% on Binance. Graphic designer Batuhan Basoglu expressed his uncertainty in regards to the lira’s future and decided to convert his savings into other cryptocurrencies such as Tether instead.
Highest Ownership Rate Of Crypto
Research shows that Turkey has the highest ownership rate of digital currencies worldwide at 27.1%. With physical dollars or gold becoming difficult for Turkish citizens to acquire, they have been forced into using cryptocurrencies such as Tether instead in order to preserve their wealth amidst this economic crisis.
Uncertain Future
The future remains uncertain for both Turkey and its inhabitants during this time of financial turmoil. It remains unknown how much longer people will be turning towards stablecoins out of necessity until more effective measures are taken by authorities in order to stabilize the economy and restore faith in traditional financial systems again.
Conclusion
Tether has become increasingly popular in Turkey due its use as a form of protection against inflationary pressures caused by an unstable economy and currency devaluation, signalling a shift towards digital currencies amongst residents who are looking for alternative ways of preserving their wealth.