Turkish fervour on blockchain-powered customer database and its own cryptocurrency

As the Turkish lira’s crisis intensifies, the crumbling economy of Turkey could also turn to bitcoin in its hour of need as the pioneer cryptocurrency’s prime objective is meant for an alternative solution to hyperinflation and a collapsing currency.

Turkey’s Borsa Istanbul Stock Exchange (BIST) has developed a blockchain-powered customer database.Founded in 2013, BIST is the result of the merger of the Istanbul Stock Exchange, the Istanbul Gold Exchange, and the Turkish Derivatives Exchange (TurkDex). Per the exchange’s annual report for 2017, it has 399 listed companies, a market capitalization of around $133 billion, and $1 trillion of total traded value.

It’s the latest wrinkle in an international political tussle financially breaking a great many Turks in its wake. Consequently, the country’s fiat currency is down some 40% against the greenback, hyperinflation has gone out of control, and politicians are ramping up nationalism in an effort to avoid widespread calls for basic economic reform, raising interest rates, seeking International Monetary Fund assistance, etc. The lack of diplomatic agreement could bring about yet another round of US economic sanctions against Turkey.

The regions such as Venezuela is looking for cryptocurrencies adoption as an alternative store of value, very recently, Turkey’s lira has remarkably collapsed to flash headlines across the world. In recent months, Turkey has demonstrated a proactive approach to blockchain adoption, even considering the development of a national digital currency, lawmakers of the state Directorate of Religious Affairs have previously said that Bitcoin (BTC) was “not compatible” with Islam.

Eiland Glover, Founder and CEO of Kowala commented: "Interest rate manipulation by the central bank appears to be Turkey's only option. But what about a future where in which governments lack much of the power to create such economic crises in the first place? We are witnessing the end to the nation-state’s monopoly on the creation of money.” 

The latest advancement synchronizes the customer databases of Borsa Istanbul, Istanbul Clearing, Settlement and Custody Bank (Takasbank), and the Central Securities Depository of Turkey (MKK).

The latest platform, that is “designed under the Know Your Customer concept (KYC),” will monitor the clients’ additions, manage documentation, and edit information. “If required, the application can be used in other projects too,” BIST reportedly mentioned.

The traction for the cryptocurrency and keenness is generated following a nosedive of the national fiat currency, the Turkish lira. From last couple of months, the local exchanges experienced trade volumes spike by as much as 150 percent, as traders tried to safe-guard their fiat savings from devaluation by pouring it into Bitcoin.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -161 levels (which is bearish), while hourly USD spot index was at -69 (bearish) while articulating (at 09:25 GMT). For more details on the index, please refer below weblink:

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