Turkey’s President Recep Tayyip Erdoğan has appointed Professor Fatma Ozkul, an expert in crypto assets and blockchain technology, to the central bank’s rate-setting committee. This nomination was officially announced in a decree on December 22, as reported by Bloomberg.
Professor Ozkul has been a lecturer at Istanbul’s Marmara University since 2012, specializing in accounting, finance, and auditing. Her expertise extends to blockchain technology and digital assets, and she notably authored a book on crypto asset accounting in 2022, as indicated in her university profile. This appointment reflects a recognition of the growing importance of cryptocurrency and blockchain technology in financial and economic decision-making within Turkey.
Fatma Ozkul is now the newest member of Turkey’s central bank Monetary Policy Committee, tasked with setting the benchmark interest rate to manage inflation. This addition to the committee comes after its recent decision on December 21 to raise the country’s interest rate by 2.5 percentage points to 42.5%. This move was a response to Turkey’s inflation rate exceeding 61.98% in November.
Following his victory in Turkey’s general election in May, President Erdoğan reshaped the economic team by appointing former Goldman Sachs banker Hafize Gaye Erkan as the governor of the central bank.
In the realm of digital currencies, in 2022, the central bank successfully conducted the initial test of its own digital currency, the Digital Turkish Lira. This development underscores Turkey’s interest and involvement in exploring innovations in the financial and digital currency space.
Crypto Adoption Soars in Turkey
Turkey has experienced a notable surge in crypto adoption, ranking fourth globally in terms of raw crypto transaction volumes, as reported by blockchain analytics firm Chainalysis. The data revealed that from July 2022 to June 2023, Turkey witnessed approximately $170 billion in crypto activity, positioning it just behind the United States, India, and the United Kingdom.
Additionally, a survey conducted earlier in the year indicated a growing trend of Turkish adults turning to cryptocurrency investments, driven in part by the country’s persistent issue of soaring inflation. According to the survey, over half of the Turkish population is now actively participating in the crypto market, underscoring the increasing significance of digital assets as an investment choice amid economic challenges.
The survey results highlight a substantial 12% increase in the number of crypto investors in Turkey over the past 18 months. The figures surged from 40% in November 2021 to an impressive 52% by May 2023.
The findings underscore a growing interest and acceptance of cryptocurrencies, especially as a hedge against inflation. This trend is particularly noteworthy given the significant depreciation of the Turkish lira, which has declined by over 50% against the US dollar.
Furthermore, the survey revealed a considerable diversification in the demographics of crypto investors among Turkish adults over the past year and a half. Although men continue to dominate the market with a 57% share, there’s a rising trend in women’s participation rates, particularly among the younger generation, signaling a broadening interest in cryptocurrency investments.
The survey provides more specific insights, indicating that almost half (47%) of crypto investors in the 18 to 30 age group are female. This suggests a narrowing gender gap in crypto adoption as it becomes more widespread, highlighting a significant presence of women among younger crypto investors.
In response to the surge in crypto transactions, Turkish authorities are reportedly contemplating regulatory measures for the country’s crypto market. These regulations are expected to focus on licensing and taxation, with the goal of removing Turkey from the “grey list” of the Financial Action Task Force (FATF). This indicates a recognition of the need for regulatory clarity and compliance to address potential risks associated with increased cryptocurrency activities.
