In an effort to independently stimulate its economy, Turkey is pursuing a range of initiatives to integrate and adopt cryptocurrencies.
As the Turkish economy continues to wobble, development and adoption of crypto alternatives keep growing. Rising tensions with the United States, declining investor confidence, and shrinking financial reserves have pushed the lira (TRY) to record lows this year.
To prevent a deeper recession, the country has significantly increased investment in cryptocurrencies and blockchain technology. This shift is backed by broad public support: more than two-thirds of the population view crypto adoption positively, and recently introduced crypto-backed debit cards have gained popularity nationwide.
Beyond experimenting with the idea of a central bank digital currency (CBDC), Turkey is investing in blockchain research and education. Programs aim to encourage local youth to study blockchain technology and to support homegrown tech companies. Over time, these efforts are expected to strengthen the economy by reducing reliance on foreign experts.
Financial inclusion is another driving factor. More than 30% of Turkey’s population lacks access to a bank account. Cryptocurrencies can help expand financial services, especially in eastern regions where ongoing conflicts and instability make it difficult for banks to maintain physical branches.
Jonathan Leong, CEO of BTSE, described how political and economic conditions have pushed many Turks toward crypto adoption:
“Political uncertainty in Turkey and volatile exchange rates have made the population a leader in cryptocurrency adoption. Cryptocurrencies provide easy access to savings, cross-border payments, and an effective hedge against inflation. Adoption of crypto debit cards is a natural evolution given economic instability and the digital asset landscape,” Leong said.
Emre Aksoy, an advisor to Turkish government bodies on crypto adoption and regulation, has noted that roughly 3 to 4 percent of the country’s GDP comes from transaction fees and banking intermediaries:
“Cryptocurrency technology will cut these costs and reduce our dependence on other nations. Turkey now has a real opportunity to rescue its economy.”
Turkey’s population is relatively young, with a median age of 31.5 years, which suggests a higher likelihood of adopting new technologies compared with other parts of Europe. More than 90% of adults own a smartphone, amounting to over 50 million mobile internet users.
An ING Bank survey in 2018 found that 18% of the population already owned some form of cryptocurrency, while another 25% expressed interest in buying.