By James Davis
Over the last few months, crypto adoption in Turkey has been on the rise. The increased use of cryptocurrencies is fueled by the high inflation experienced in the country. According to a study carried out by crypto exchange KuCoin, crypto adoption in Turkey went from 40% in December 2022 to 52% in August this year.
The World’s fifth-biggest crypto exchange by trading volume collected data from over 500 Turkish residents for its study titled “Understanding Crypto Users.”
KuCoin reported that people in Turkey are increasingly becoming interested in cryptocurrencies as they have accepted these digital assets as a hedge against rising inflation. It is worth highlighting that the Turkish lira has lost more than 45% of its value against USD.
The crypto exchange also mentioned that people in countries like Nigeria and Brazil have adopted digital currencies due to high inflation.
Meanwhile, the survey shows that 59% of respondents are investing in crypto to amass wealth in the long term, while 41% view cryptocurrencies as a store of value.
Which Cryptocurrencies Do Turkish Citizens Own?
In terms of which crypto assets the Turkish residents are injecting their funds into, Bitcoin takes the top position. 71% of the respondents revealed they were holding BTC, while 29% owned stablecoins and Ethereum.
Although the study indicates that men in Turkey have invested in crypto more than women, KuCoin says the number of female crypto investors is increasing. About 43% of the respondents were young women below 30 who already own crypto. Most of them said they decided to put funds into digital assets after their families and friends told them about the benefits of crypto.
Despite the increasing crypto adoption, KuCoin says there is a need for governments to educate the public about cryptocurrencies for mainstream adoption to happen.
Meanwhile, the Turkish government, through the Central Bank of the Republic of Turkey, is currently conducting pilot tests for its central bank digital currency, Digital Lira. The central bank recently said it will publish a detailed evaluation report before December 31. Countries already with their central bank digital currencies include China, India, and Nigeria.