Turkey is strategically positioning itself as a Eurasian cryptocurrency and blockchain hub to revitalize its economy. Bridging East and West geographically, the nation leverages its unique position to foster blockchain innovation amid economic challenges like inflation (peaking at 25% in 2018) and currency volatility.
Key Developments in Turkey's Blockchain Ecosystem
National Digital Currency: The Turkcoin Initiative
In 2020, Turkey plans to launch a state-backed digital currency, "Turkcoin," regulated by the Capital Markets Board. This move aims to create a secure environment for blockchain startups and solidify Istanbul’s status as a global financial center.
Supporting Infrastructure:
- Takasbank’s blockchain-based gold-backed transfer system (BiGA Digital Gold) enables banks like Ziraat and Garanti BBVA to trade digital assets representing physical gold.
- The system processes transfers of 1-gram gold units stored in Istanbul’s vaults, enhancing transactional transparency.
Public Adoption and Sentiment
Research highlights Turkey’s crypto enthusiasm:
- 62% of Turks view cryptocurrencies positively (per ING study), far exceeding European averages.
- 20% of the population (16.8 million) owns or uses crypto (Statista).
- 63% support traditional banks offering crypto accounts, reflecting strong mainstream demand.
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Konya’s "City Coin" Project
Konya, a city of 2.4 million, is pioneering municipal blockchain applications:
- Social Aid: Blockchain manages welfare funds.
- Public Services: Cryptocurrencies for transit, environmental programs, and payments.
- Smart City Tech: Non-contact payment systems and apps integrate blockchain.
Industry Growth and Global Partnerships
Cryptocurrency Exchanges Enter Turkey
- Binance and Huobi established local offices, introducing Turkish Lira (TRY) trading pairs.
- Binance CEO Changpeng Zhao noted Turkey’s "vibrant" crypto growth, planning a 20-member local team.
Political and Institutional Backing
President Erdoğan’s 2020 digital lira testing pledge underscores national commitment. Collaborations with banks and tech firms accelerate adoption.
FAQs
Why is Turkey focusing on blockchain?
To stabilize its economy, attract investment, and modernize financial systems amid inflation and currency crises.
What makes Turkcoin unique?
It’s a regulated, state-backed digital currency designed to streamline transactions and boost blockchain startups.
How do Turks view cryptocurrencies?
Over 60% embrace crypto for future use, driven by distrust in traditional banking and tech-savvy populations.
Conclusion
Turkey’s blend of regulatory clarity, institutional support, and public enthusiasm positions it as a blockchain leader. With projects like Turkcoin and City Coin, 2020 marks Turkey’s pivotal year in global crypto adoption.
Author: Erhan Korhaliller, Founder of Istanbul Blockchain Week and CEO of EAK Digital.
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