Turkey’s central bank bannedthe use of cryptocurrencies and crypto assets to purchase goodsand services, citing “irrepairable” possible damages and significant risks in such transactions.
In legislation published in the Official Gazette overnight,the Central Bank 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 ofpayment.
“Payment service providers will not be able to developbusiness 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,” the bank said.
A growing boom in Turkey’s crypto market had gained further pace recently, with investors hoping to both gain from bitcoin’s rally and shelter against inflation.
A weaker Turkish lira and inflation pressures also havedriven up demand for the cryptocurrency.
In a…