Bitcoin is down more than 4% on friday. Altcoin such as etherium, ripple, binance coin also down between 5%-10%. And this has happened after the Turkey's central bank announced that it is banned to use cryptocurrency and crypto assets to make payment.
In an Official Gazette, CBRT(Central Bnak of the Republic of Turkey) said that cryptocurrencies and other such digital assets based on distributed ledger technology could not be used, directly or indirectly, to pay for goods and services.
After this announcement, bitcoin and altcoin prices fall down to a remarkable number.
In the statement, the central bank said crypto assets were "neither subject to any regulation and supervision mechanisms nor a central regulatory authority", among other security risks.
"Payment service providers will not be able to 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 will not provide any services, they said.
This announcement came in such time when the crypto market in Turkey is growing.
Many asked why they took such step while giant companies took step to make payment for their goods??? Amongs these companise, there are Elon Musk's Tesla, Paypal etc. Even in Turkey, Royal motors announced this week that they will accept any payment for their goods in cryptocurrency.
To answer this question, CBRT said that
1) Cryptocurrency has no regulation and supervision mechanism
2) Cryptocurrency has no central regulatory authority
So the use of cryptocurrency has a big risk. Your digital wallet may be stolen by hacking. One an use money unlawfully. One might be unable to recover money after any wrong transaction. And for this reason they banned the use of cryptocurrency in their country.
Many countries banned cryptocurrency for the same issue before. And may other has some agenda to ban it, such as India.
The reaction of banning cryptocurrency is varying from person to person. Many support it, many criticize it. Many think that cryptocurrency is the future of economics. The future of world economy will depend on it. Though it has a great influence now, it will increase more in future. In their opinion, Turkey has taken a bad step which is not suitable for present world. They said that the worst thing they are doing by banning cryptocurrency. This ban will give strength to cryptocurrency in future.....
Others are happy for banning cryptocurrency. They don't like virtual coin.
One of the user named Margaret Smith comment on a barrons.com that,"I can make an ENDLESS supply of crypto imaginary tokens in my own home by running free open source code.
Can you make an ENDLESS supply of gold in your own home?
If you can understand this, then maybe you can understanding the difference between real and fake SCARCITY." I think this comment has a big value. How you think about it???
However this ban will be a noticeable happenings in the history of both Turkey and cryptocurrency. What will happen in future? We have to focus on it. Everything ma happen.
How do you think about this ban of cryptocurrency? How you see the step taken by Turkey's government?
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