Bitcoin Is Falling In Value As Turkey Prohibits Cryptocurrency Payments
By Mark L- Cryptocurrency expert - 16-04-2021
The price for buying Bitcoin (BTC) dropped on Friday when Turkey's central bank announced a ban on the use of cryptocurrencies for payment which will commence at the end of April.
The Central Bank of the Republic of Turkey (CBRT) did provide many viable reasons as to why they decided to enforce this ban, such as there being a lack of supervision systems and central authority oversight for crypto asset management. CBRT also mentioned that market prices can be "excessively volatile," with wallets that can be hacked or used for illegal purposes, and transactions that are irreversible.
The benchmark cryptocurrency BTCUSD, -2.54% fell 4% to $60,902 after hitting all-time highs above $64,000 earlier this week ahead of Coinbase's COIN.
According to the new legislation, finance processing providers are unable 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.”
The CBRT stated that the decision was made in response to an increase in the use of crypto assets to pay for products. Last month, Tesla CEO Elon Musk announced that people living in the US can purchase a Tesla using Bitcoin investments, anticipating the rest of the globe being able to do the same later in the year.
Tesla TSLA, 0.80% announced in February that it had spent $1.5 billion to buy Bitcoin and intended to use it as a form of payment. PayPal PYPL, -1.42%, an online payment service, began allowing US customers to buy products with cryptocurrencies at the end of March. However, the CBRT stated that crypto market investments do pose “risks in their “nonrecoverable” nature.