Business - Market Data
Updated: April 16, 2021

Bitcoin's Rally Slumps As Turkey Bans Crypto Payments

By Oluwatosin Ogunjuyigbe
April 16, 2021
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Bitcoin slid from its record high on Friday following the decision by the Turkish government to ban the use of cryptocurrencies and crypto-assets to purchase goods and services.

The flagship cryptocurrency dropped to 61,240 from its record high of $64,829, according to data from coindesk.com after a brief period of panic selling and profit-taking from investors.

The Central Bank of the Republic of Turkey (CBRT) said cryptocurrencies and other such digital assets based on distributed ledger technology could not be used, directly or indirectly, as an instrument of payment.

"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 be able to provide any services related to such business models," CBRT said in a statement.

According to the country's apex bank, "Their use in payments may cause non-recoverable losses for the parties to the transactions ... and include elements that may undermine the confidence in methods and instruments used currently in payments,"

Turkey's growing crypto market has gained momentum in recent months as investors joined a global rally in bitcoin, seeking to hedge against lira depreciation and inflation, which topped 16% last month.

The Regulation on the Non-Use of Crypto Assets in Payments will come into effect on April 30.