The re-election of President Erdogan is followed by a record low of the Turkish Lira as it dropped to around 20 compared to the US Dollar, following a 20% fall. Lira, which has lost over 90% of its value over the past decade is currently going through another one of its bust cycles, leading to further inflation.
The inflation rate in Turkey skyrocketed in October to 85% and is currently projected at 44%. Following this, the chief analyst of Danske Bank expressed his concern regarding a possible currency crisis unless there is a complete 180 shift in Erdogan’s economic policies.
Erdogan’s anti-crypto government won by a slim majority of 52% as compared to the pro-crypto opposition with 48% votes. However, the gigantic slump caused by his policy decisions can potentially drive citizens towards digital and store-of-value assets like Bitcoin and gold.
Turkey witnessed peak inflation in 2022, with people embracing Bitcoin faster than usual. Several Bitcoin platforms recorded a notable surge in the previous year.
Even with the government outlawing Bitcoin, it has not deterred investors who view it as a saving grace with the national currency sinking. OXX, a crypto exchange, claimed earlier this month that it was planning to set up its office as it viewed Turkey as an invaluable market for its users and would want to establish a strong crypto ecosystem in the country.