- As Turkey’s national currency continues to hit rock bottom, residents of the country are reportedly running towards Tether (USDT) to secure their finances.
- Although Turkey has continued to crackdown on the asset class, Lira continues to underperform and drop to new historic lows.
The last elections held before the most recent took place in 2018. So far the Turkish Lira has shed a staggering 80% of its value since the elections were held. It is being suggested that President Erdogan’s economic policies have played a significant role in pushing the Lira to the ground.
Many investors across the globe have pivoted to cryptocurrencies to protect them from inflation and the many other downsides that come with holding fiat currencies. The case is no different for Turkish residents who are making a swift and necessary currency switch at this time.
As the country’s national currency Lira continues to lose its value, Turkish residents are placing their hopes on digital currencies to keep them afloat.
Although leading digital currencies like Bitcoin and Ethereum are typically some of the most sought after by investors looking to escape inflation, Turkish residents are reportedly focusing their gaze on the Tether (USDT) stablecoin.
According to reports from Bloomberg, the interest rate in Tether (USDT) rose significantly back in May. The new development was spotted as the country prepared for its elections. After President Recep Tayyip Erdogan, who previously held the position won the elections again and secured himself another five years on the seat, residents strengthened their faith in the USDT.
President Recep Tayyip Erdogan is known for being a crypto critic. It is worth noting that although the country’s government has consistently cracked down on the Tether stablecoin, Turkey’s Lira, which seems to benefit from friendly regulation in the country, has performed even worse over the past months. Bloomberg asserts that in the last few days, Turkey’s Lira has dropped to new lows for the first time since its creation.
The Lira Currency has now dropped by a whopping 80% since the last elections held in 2018
Post-elections, Turkey’s central bank has refrained from stepping in to strengthen the Lira. As a result, the Turkish currency has dropped by 11% against the U.S. dollar in the past week.
In addition to these strict economic policies, President Erdogan has also made an alarming attempt to curb inflation as high as 80% with interest-rate cuts.
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University lecturer and banker Ebru Güven explained that “Investing in stablecoins allows people to keep the value of their wealth; it’s one of the ways to hold on to some value when inflation is this high. This is the only motivation for people to buy stablecoins right now.”
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