The Central Bank of the Republic of Turkey has banned the use of Bitcoin and cryptocurrencies for payments

According to a press release today, the Central Bank of the Republic of Turkey has banned the use of cryptocurrencies for payments, such as Bitcoin.

Turkey central bank banned the use of cryptocurrency for payments, such as Bitcoin

As far as the announcement goes, cryptocurrencies cannot be used directly (even indirectly) for payments and no company will be able to provide such services.

The central bank stated:

“Payment service providers cannot develop business models in a way that crypto assets are used directly or indirectly in the provision of payment services and electronic money issuance, and cannot provide any services related to such business models.”

Cryptocurrencies inherently carry significant risks, according to the central bank. First, it is not regulated by a central authority. Second, there is no high liquidity or risk. Third, their transactions are irrevocable and can be used for illegal activities by the anonymity structure.

The central bank added:

“Recently, some initiatives have emerged regarding the use of these assets in payments. It is considered that their use in payments may cause non-recoverable losses for the parties to the transactions due to the above-listed factors and they include elements that may undermine the confidence in methods and instruments used currently in payments.”

It is known that this rule will take effect from April 30, 2021.

Currently, Bitcoin and the cryptocurrency market do not seem to have overreacted to this news. At press time, Bitcoin is priced at $ 61,678, a slight decrease of 3% over the past 24 hours.

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