The economy of the Republic of Turkey, as well as the country’s native fiat currency, the Turkish lira, remain in instability, with inflation reaching 36%. The lira has lost 44 percent of its value versus the US dollar since this time last year. Meanwhile, the use of stablecoins in Turkey has soared, with 28.96 percent of all tether trades matched against the Turkish lira now accounting for 28.96 percent of all tether trades.
In Turkey, inflation has reached its highest level in 19 years; TRY is Tether’s top pair, accounting for 29 percent of all trades; and TRY commands 7.20 percent of BUSD trades.
According to data released by the Turkish Statistical Institute on Monday, inflation in Turkey has reached 36%, the highest level in 19 years. According to Reuters, a basket of consumer prices increased by 13.58 percent in December.
The Turkish lira has lost 44 percent of its value against the US dollar in the last year. During Tayyip Erdoan’s reign, inflation has never been higher. The country’s central bank recently created a concept that encourages citizens to convert gold into lira time deposits.
Turkey’s central bank has cut the country’s benchmark interest rate for the fourth time in a row. Following the rate cut in mid-December, the Turkish lira fell to a historic low of 15.5 against the US dollar.
The year 2021 has revealed a significant increase in demand for bitcoin (BTC) in Turkey. TRY currently accounts for 0.69 percent of all BTC trades and 0.72 percent of all ETH swaps.
Turkey’s demand for stablecoins outnumbers that for standard crypto assets such as BTC and ETH. On January 3, 2021, data showed that the stablecoin tether’s (USDT) top fiat trading pair is TRY, accounting for 29.42 percent of USDT swaps.
Binance’s stablecoin BUSD has accounted for 7.20 percent of all deals with the Turkish currency today, and TRY is BUSD’s second-most traded pair. Turkey doesn’t use USDC much, with TRY accounting for only 0.36 percent of all USDC swaps today.
According to reports, the lira’s slow year has contributed to a large number of crypto-asset trades with the fiat currency. Turkish President Recep Tayyip Erdoan, on the other hand, has emphasized Turkey’s position on cryptocurrencies, stating that “we have a separate war, a separate struggle against them.”
According to metrics, Turkish inflation is caused by a variety of causes, including the cost of transportation, food and beverage expenditures, and home items “skyrocketing” in contrast to a year ago today.
In addition to the gold conversion scheme, Erdoan has urged Turkish enterprises and high-net-worth individuals to assist in the protection of the country’s native currency. “We are bound to collapse as long as we do not use our own money as a standard.” We will proceed with the Turkish lira, which is our money. “Not in foreign currency,” Erdoan said on Friday.