Turkey

Turkey Has Revealed Plans To Create Its Own Cryptocurrency

Turkey Plans To Launch Its Own Cryptocurrency

Turkish politicians are reportedly planning to develop their country’s own cryptocurrency. This appears to be a joint-initiative being pursued by Turkey’s ruling Justice and Development party (AKP) and the nation’s Nationalist Movement party (MHP). This seems a bit unexpected considering Turkish authorities previously compared digital currencies to a pyramid scheme and cautioned investors to steer clear from them.

Now, presumably after some more research and investigation, the MHP has suggested that rather than ignoring cryptocurrencies, the government should develop a legislative framework to monitor and regulate their crypto-market. Ahmet Kenan Tanrikulu, a prominent economist and MHP’s former deputy chair, has recommended the launch of Turkcoin, a state-controlled “national bitcoin”. Mr. Tanrikulu has not merely suggested such a move, but has also drafted a 22-page detailed report regarding the plan.

Getting Into Crypto Before “It’s Too Late”

While discussing his proposed crypto-project, the Turkish politician stated, “The world is advancing toward a new digital system. Turkey should create its own digital system and currency before it’s too late”. The former minister of Industry and Commerce acknowledged the use of cryptocurrencies in Turkey, even though the country does not have a proper set of crypto regulations. He also pointed out that “The need for regulation is obvious” and added that the use of digital currencies to conduct illicit activities must be stopped.

He then went on to explain that there are over 1,400 cryptocurrencies, and many other countries have already adopted them. Therefore, he thinks that Turkey should be capable of creating its own cryptocurrency as well. Moreover, the need for a state-controlled crypto is there, but that doesn’t mean it will be competing with other digital currencies, according to Mr. Tanrikulu. Presumably, this means that Turkey’s state-issued crypto will serve its own purpose. Per Tanrikulu, “This is a national issue which requires a national consensus”.

Few Details Regarding Turkcoin’s Implementation

Although not all the implementation details regarding Turkey’s proposed Turkcoin are clear at the moment, it has been suggested that the state’s cryptocurrency might be issued by tokenizing it with asset-backed securities. Tanrikulu believes that this should significantly reduce the risks associated with typical cryptocurrencies, because it will be pegged to a more stable asset.

It’s possible that Turkcoin could be pinned to the assets of certain large, public Turkish companies that are a part of the $200 billion Turkish Wealth Fund, based on Turkrkulu’s report. These organization include the Istanbul Stock Exchange, Turk Telekom, and the Turkish Airlines.

Interestingly, Turkey’s announcement has come right when its neighbor, Iran, has also expressed an interest in developing its own cryptocurrency. Although the specific reasons for creating their state-backed digital currencies might be different, they’ve joined a growing list of countries countries that are planning to launch their own cryptocurrencies.