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    The euro-dollar is no longer the most popular currency pair

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    After the dollar, the euro or even gold, the Turks have found their new solution to deal with the extreme devaluation of their local currency. Tether, a stablecoin backed by the US dollar, became, along with the Turkish lira, the most traded currency pair in the world last fall, overtaking the euro-dollar, according to data from Chainalysis.

    Explained more simply, more and more Turks are turning to a virtual currency to invest their savings, which would lose interest in remaining in Turkish lira, while the latter sees its value collapse. Since September 2021, the national currency has lost 40% of its value against the dollar, knowing that its devaluation is not a new subject.

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    “Insane rate policies, waning confidence in published inflation statistics and political decisions…have made cryptos a safe haven, even though cryptos are rather risky and volatile financial assets”, Kağan Şenay, a 27-year-old trader from Bursa in northwestern Turkey, told the pages of the Wall Street Journal.

    Real inflation over 82%

    Inflation is the second trigger for this cryptocurrency rush. In Turkey, far ahead of the official figures, inflation would have reached 82.8% over one year (ENAG figures). But the measures of President Erdogan, constantly against the recommendations of the central bank based in Ankara, have created serious problems.

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    To counter the devaluation of the pound, the Head of State has found nothing better than to dip into public coffers and engage with households. In one week, at the end of 2021, the state’s net reserves had fallen from 12.2 billion to 8.6 billion dollars.

    In the shadow of Tether’s popularity, cryptocurrencies are not welcome in Turkey after the government implemented a ban on their use for payments in April 2021. But specialized exchange platforms continue to do their part. trade. Asked by the Wall Street Journal, the marketing director of the Turkish platform Bitlo said:

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    “The volatility of the Turkish lira and the rise in inflation seen in recent months have led our investors to view cryptocurrency as a profitable long-term investment and as a short-term inflation hedge.”

    Source From: Presse-Citron

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