Bitcoin’s dominance and show of force as the leading cryptocurrency hit a snag early Friday after Turkey banned the use of digital currencies for payments from the end of the month.
A number of reasons were cited by the Central Bank of the Republic of Turkey, including lacking supervisory mechanism and central authority regulation for crypto assets.
It added that the market values can be excessively volatile and that digital wallets can be stolen and used in illegal activities. The transactions involving these are also irrevocable, thus eliminating any chance of having corrective measures during unfortunate events.
The Immediate Effects
Shortly after the move, the number one cryptocurrency, Bitcoin (BTC), traded at $60,902, which is 4% lower as compared when it reached an all-time high of $64,000 following the decision of the crypto exchange platform Coinbase to have Initial Public Offering.
Bitcoin (BTC) wasn’t the only one affected, as the second-largest digital currency, Ethereum (ETH), also fell behind by 3.9%.
Despite the observed rise in the public interest to use crypto assets in various payments, the Central Bank of Turkey still took the decision, enforcing new regulations that will ban cryptocurrency payments.
Turkey Is Not the Only One
To be fair with Turkey, it is not the only country that is taking rough measures towards digital assets.
Scattered reports say that there is a law being proposed in India that will ban cryptocurrencies. Moreover, the proposed bill will also impose fines on trading or even holding digital assets. It was said to be included in the government agenda last January, which also revealed plans to create official digital currency issued by the Reserve Bank of India.
The said bill also aims to ban all private digital currencies in India, but the promotion of the underlying technology of cryptocurrency and its uses will be allowed.
Image courtesy of Cointelegraph News/YouTube Screenshot
Source: https://bitcoinerx.com/bitcoin/turkey-bans-use-of-cryptocurrency-as-mode-of-payments/
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