Erdogan meets El Salvador’s Bitcoin booster amid economic crisis. After becoming the first country to recognize bitcoin as legal cash. Turkish President Recep Tayyip Erdogan traveled to El Salvador. And spoke with the country’s leader during their visit. Turkish central bank has maintained interest rates on hold. A move that is unlikely to have much of an impact on the country’s protracted currency crisis.
Despite the fact that bitcoin’s dollar value has plummeted in recent weeks. Turks and foreign investors were keeping an eye.On the meeting between Mr. Erdogan and President Nayib Bukele in Ankara.To see if it would signal a shift in how Turkey’s government views cryptocurrencies. El Salvador is preparing to issue a $1 billion bitcoin-backed bond. And Turkish and foreign investors were keeping an eye on it as well.
In the aftermath of their meeting at the presidential compound in Ankara. The two presidents acknowledged their respect for one another’s leadership. Although none mentioned cryptocurrency.
“You have a terrific leader,” Mr. Bukele said, complimenting the team.
In the conference, which will take place during a period of economic instability in Turkey. Analysts expect Mr. Bukele to urge for the usage of Bitcoin, according to the analysts. Despite the fact that the Turkish government has taken an increasingly restrictive stance. Toward cryptocurrencies in recent years, observers expect him to urge. For their use during the conference. Turkish lira’s value versus the dollar plummeted by 40% in the past year. Sparking protests on several occasions and putting the country’s financial stability in danger. This year, the Turkish lira has lost 40 percent of its value versus the dollar. Despite the country being a member of the Group of 20. And the North Atlantic Treaty Organization.
The benchmark one-week repo rate remained at 14% on Thursday
Aside from that, Turkey’s central bank held its benchmark one-week repo rate steady. At 14 percent on Thursday morning. Officials reduced interest rates for four consecutive months in the months before. Increasing the depreciation of the currency.
According to Mr. Erdogan, as part of his unconventional approach. To spur economic growth, lower interest rates must be implemented. He has sacked practically every senior Turkish official who disagrees with his vision. The lower interest rates implemented last year increased inflation. As a result of lower lending rates while simultaneously weakening the purchasing power of the lira. Causing prices for vital imports such as food and energy to rise.
Turks have poured money into cryptocurrencies in order to counter inflation. And a dramatic depreciation of the lira. During the discussion with Mr. Bukele. Mr. Erdogan stated that he is drafting new legislation to control the emerging financial assets. Mr. Bukele’s administration became the first in the world to adopt bitcoin as a national currency. Despite the fact that Turkey banned cryptocurrencies. As a form of payment just a year before.
Mr. Bukele is one of the world’s most prominent proponents of cryptocurrencies. And observers expected him to bring up the subject during his meeting with Mr. Erdogan. However, it is uncertain whether the Turkish government will change its position on the matter.
Because the Trump administration has been an outspoken supporter of bitcoin. Turan Sert, an adviser to Turkish cryptocurrency exchange Paribu. Predicts that the bitcoin issue will be raised during the presidential debate. The Turkish administration may pay attention to him. But I’m not confident that it will have a significant impact on their thinking.