As the Lira plummets, interest in Bitcoin skyrockets in Turkey

English Mar 22, 2021

Turkish lira's purchasing power plunged 15% this morning against the dollar when President Erdoğan sacked central bank reformist governor Naci Ağbal on Friday evening, replacing him with an allied figure, Şahap Kavcıoğlu.

Historically, Turkey's currency has been affected by high inflation, having also dropped 23% against the dollar last year, and was in free fall until the previous governor, appointed in November, raised interest rates to contain the inflation, despite Erdoğan's stance against high interest rates.

According to data from Google Trends, which shows the number of searches in a given region and helps us understand trends, the number of searches for "Bitcoin" in Turkey has reached the peak of popularity (a relative score of "100") in the last seven days, coinciding with the sad turmoil of the lira.

To allay market fears, the Minister of Treasury and Finance, Lutfi Elvan, tweeted a statement this morning saying that the country will remain on the tracks of the free market and a liberal exchange regime.

But the damage seems to be done already. Government failures like these give Bitcoin and Blockchain technology a boost and credibility in the eyes of ordinary people living under regimes whose monetary policy is unstable and highly inflationary like Turkey.


Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.