As inflation continues to bite, Turkey has witnessed tremendous growth in crypto adoption. A recent survey by KuCoin indicated that the Turkish have shifted to the crypto space. The KuCoin team noted that 2022 crypto adoption increased by 52% from 40% in 2021.
Crypto Adoption in Turkey
In the findings, the KuCoin team observed that crypto assets are used to hedge against spiking inflation. The crypto exchange stated that while the inflation rate increased the Turkish digital lira to a loss of over 50% of value. Despite the accelerating inflation rate, the researchers noted that Turkey has experienced a growing interest in crypto assets over the past few years.
The situation in Turkey corresponds to Brazil and Nigeria, where the rise of consumer goods has encouraged people to move to the crypto sector. The KuCoin survey titled “Understanding Crypto Users” involved 500 participants.
The study aimed at examining the factors that affect crypto investments. Reportedly, 58% of the participants invested in crypto to generate returns. In contrast, the remaining 37% invested in crypto to store value when the country battles inflation.
In previous research, most crypto assets, including Bitcoin, are designed to control the increase in general prices of goods. Ideally, most crypto assets have a fixed supply compared to the local fiats.
Impact of Inflation
The KuCoin research demonstrated that 71% of Turkish crypto proponents have invested in Bitcoin while 45% purchased Ether (ETH) and other stablecoins. The statistics show that approximately 21% of the investors invested in nonfungible tokens (NFTs) and 19% in metaverse.
Surprisingly, most crypto investments are owned by young Turkish women and men. The study indicated that 47% of the women investors are between the age of 18 to 30 years.
Besides the benefits of investing in a crypto asset, the KuCoin team noted that social influences and word of mouth have encouraged 57% of investors to venture into crypto.
Moreover, the researcher lauded the remarkable efforts made by the Turkish regulators to shape the crypto ecosystem. In December 2022, the Central Bank of Turkey announced the completion of the first phase of the pilot test for the digital lira.
Digital Lira Pilot Testing
In the subsequent trials for the central bank digital currency (CBDC), the bank plans to collaborate with tech firms. The bank plans to integrate the distributed ledgers into the CBDC in the next pilot project.
In separate writing, the KuCoin team admitted to having a comprehensive understanding of crypto assets. The crypto exchange intends to leverage its vast expertise to reshape the global financial landscape.
In the latter the KuCoin team praised Turkish investors for supporting the growth of the crypto sector. The report demonstrated that the efforts made by President Recep Erdogan to stop the use of Bitcoin have not materialized. During the previous election, Mr. Erdogan announced war on Bitcoin once he ascended to the presidential position.