Turkey’s currency has depreciated by 40%, and people turn to Bitcoin and USDT for value preservation

The Turkish currency Lira (Lira) has depreciated nearly 40% since September, making people live in dire straits, and even having difficulty buying daily necessities under high inflation. According to British media reports, the currency depreciation has stimulated local people to turn to virtual currencies such as Bitcoin and USDT to seek “preservation”.

Since September, Turkish President Recep Tayyip Erdoğan ordered the central bank to cut interest rates continuously and lower the base interest rate. He thought it would be able to curb severe inflation, but things went counterproductive. After each interest rate cut, the lira plummeted. On December 20, Erdogan made another rescue effort, announcing that the government would compensate the depositors for the losses suffered by the devaluation of the lira. This move eventually caused the lira to rebound and regain some lost ground.

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During the period when the lira currency fluctuated sharply, Turkish factories were facing a crisis of bankruptcy one after another. The people were miserable. Under high inflation, even wanting to buy meat became a problem. On the other hand, European tourists poured in and took the opportunity to buy bargains.

According to a Reuters report on December 21, with the devaluation of the currency driving Turks to seek other ways to protect their assets, cryptocurrency trading has become popular, and Turkey’s cryptocurrency trading volume has risen sharply to more than 1 million daily.

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