Finance Minister of Turkey Eyes Cryptocurrency ICO Model for Economy’s Struggles
The Finance Minister Of Turkey Embraces ICO Hype Amid An Already Troubled Economy
If we are to go by the Turkish regional media or reports from the country’s finance minister (Finmin), Berat Alybayrak, Turkey’s minister has just proposed looking into the cryptocurrency world of Initial coin offerings (ICOs) as one way to boost their ailing economy.
Press reports from English media are yet to say anything related to Turkey turning to state-backed digital currencies to boost the country’s economy, but have mentioned about the forecasts indicating that the country’s sagging currency the Lira, which was devalued is slowly recovering.
Turkey Finmin Announces New Economic Plan
The oldest (Century old) state owned Turkish media, Anadolu Agency, gave some details of the New Economic Program released by the Treasury and the Finance Minister and published this week. According to the minister Berat Alybayrak, Turkish economy is set to grow by 3.8% percent by the end of this year.
The minister said that they have already established the Public Finance Transformation and Change Office under the new economic program. He further said they were planning to utilize all the necessary measures and policies to offset the economic challenges the country is facing.
He said that with the new economic program, they are hoping for a stabilization process in 2019 and 2020. The program is expected to grow the economy by 2.3 percent in 2019.
The minister further reiterated that his ministry’s main intention it to push and support the stabilization process and ensure discipline in public finance. He says that a concrete example of the plan will be seen in the serious investment projects that the government is going to support.
The media outlet, Anadolu Agency, explained further that the new economic Medium-Term program (MTP), Turkey is aiming at a 1.9 percent deficit to its Gross Domestic Product (GDP) ratio in 2018 and a further 1.7 percent in 2021.
Finmin Considering The ICO Hype
Turkey is seriously craving to get good economic news and bold new plans from its current crop of leaders. In line with this, Ali Emre Konakci of a Turkish language crypto site called Koin Bulteni reported that after he had made clear his formal economic recovery program, the Finmin also insisted on using initial coin offerings as one way of the state awakening the economy.
It is quite peculiar that none of the English-language news channels reported this news despite the fact that such news was bound to catch the headlines if it was accurate. In its stead, the Turkish crypto media insisted that the New Economic Program which is a 34-page document on how to revive the country’s economy contains ICOs that have close relation to the digital money industry. Konakci refers to this aspect as a remarkable spectacle. Looking at this issue from a different angle, government engagement in a for of ICO or even encouraging the use of such is a sign of desperation or futuristic thinking.
If you use google to translate the document you will get a message stating that modern and new generation methods of raising finances such as ICO and IPCO are the main focus and will receive support and promotion through expanding of digital transformation and funding novel projects. The statement has been left hanging as it is leaving pundits to speculate and guess what it means exactly.
Using ICOs has been a way in which small investors have been using to circumnavigate normal entry barriers. Most of the ICOs never take into consideration AML, KYC nor do they put any strict restrictions that would bar possible investors. It is this open structure that has enabled thousand of start-ups to raise billions of dollars. The same ICOs are also avenues of a lot of scams floating around. Different studies checking into ICO activities have shown that illegal activities within the ICOs are disproportionate in the monetary world. Until now, Venezuela is the only country that has plunged full on a state backed crypto in a bid to revive her economy.