Turkish authorities are considering creating a state backed digital currency which will be backed by the state's sovereign wealth fund. Venezuela has already paved the path for nations by launching their own cryptocurrency and it seems obvious that other countries will be following their footsteps. Venezuela’s petro cryptocurrency which is backed by the country’s vast oil assets netted $735 million during the first day of token presale.
Ahmet Kenan Tanrikulu, the deputy chair of National Movement Party(MHP) acknowledged the need for a financial infrastructure based on a Blockchain database. Conceding to the worldwide demand of digital currencies MHP called for advancing towards a new digital system before it is too late. MHP would back any legislation for regulating and taxing TurkCoin.
Tanrikulu believes in the notion that the proposed cryptocurrency will appreciate by at least as much as the country’s wealth fund and is going to use entities such as the Turkish Airlines, the Istanbul Stock Exchange and the gas company Botas as an insurance policy.
TurkCoin will be closer to an asset-backed security than most cryptocurrencies. This will prevent it with the kind of volatility witnessed in the value of Bitcoin. The profits will be nowhere near what Bitcoin had given but the risk of slump is lesser too.
The reactions from the country was split. The Directorate on Religious Affairs in Turkey declared digital currencies incompatible with Islam. However, the nation’s central bank has applauded cryptocurrencies potential for providing greater financial stability. Further decisions will be taken based on the national consensus.
Interest in cryptocurrencies is rising across Turkey as demonstrated by the creation of Lira-Bitcoin exchange, BTCTurk and the presence of a Bitcoin ATM near the Ataturk Airport in Istanbul.
Cryptocurrencies have amalgamated to various shapes and forms and hybrid products like TurkCoin shows that there is no stopping digital assets, only moulding it for your personal gains.