Money case in Turkey is the epitome on how cryptocurrency will be in the future. Its currency, Lira dives down 40% against Dollar since September. Thus, more and more people begin to try crypto. Tether, Turks favorite crypto fret government money and took the blame as the cause of national inflation.
Tied to a specific asset, Tether is a ‘stablecoin’ said Forbes. U.S. dollar in this case is seen as the stablecoin in Tether. It is also known to be the best alternative for government money (Lira). This is because stablecoin is structured and transparent about the actual assets. Moreover, stability is vital for commercial transactions as well as long term contracts.
But Turkish government begins to wary about Lira. Last year, they banned crypto in any form of payment. But this desperate action does not satisfy Lira. “I wish I knew how to quit you,” a quote from BrokeBack Mountain by Annie Proulx best describes how Turkish love Tether.
Tether in this case, is more trustworthy when people do not trust their domestic currency. This becomes the reason why dollar is highly preferred around the world to substitute domestic currency. Foreign currency has denominated in Turks bank deposits. Meanwhile Turkey central bank Strongman Recep Tayyip Erdoğan’s has printed too many Lira. Instead of evaluating back the inflationary problem, the bank on the other hand raise the money print for 50% in the past year.
In order to help Lira soar, the government develops a new scheme for Lira saving accounts. The government also promises to make up dollar depreciation. But Turks are already too skeptical about the promises. That’s why they are moving to crypto.
