The first thing to do to stop the collapse of the Turkish lira is to stop fueling inflation. So far, we have found no better way than to raise interest rates. Turkey will then undoubtedly go through a deep recession for a few years, the time to purge the economy of bad investments. However, high rates could attract new foreign capital as in 2018 and promote national savings.
For this, Recep Erdogan must abandon the idea of fighting inflation with negative rates. He will no doubt have to dismiss his central banker friend and replace him with a more orthodox economist, capable of holding the course until the inflationary evil is eradicated. A Turkish Paul Volcker.
As in the majority of emerging countries that are going through a phenomenon of hyperinflation, rational people seek to exchange their national shitcoin for a more stable substitute to transport their purchasing power over time.
In general, it is the US dollar which remains the most reliable currency in the world. More and more Turks are also acquiring dollar stablecoins like USDT in hopes of waking up with more or less the same capital as the day before. Tokenized money, i.e. cryptocurrencies backed by very liquid short-term and high-quality reserves, is very useful in countries suffering from inflation.
With a simple mobile, it is possible to keep your savings in US dollars and exchange them for minimal fees through Layers 2 networks like Polygon.
Indeed, even though crypto payments are prohibited by law, the majority of major cities allow people to exchange their Turkish lira for BTC or USDT. You can even sometimes find bitcoin distributors.
“The state cannot be trusted to manage the currency. If we leave him the keys to the machine, at the slightest crisis, he will use this pretext to increase the money supply in circulation, which is an unacceptable violation of the right of property. A particularly iniquitous thing. “.
This is the idea that motivated the creation of Bitcoin: an electronic cash that is exchanged peer-to-peer without the need for an intermediary to trust. An intermediary who tends to betray us systematically.
Bitcoin will only feature 21 million units and not one more. Its logical construction, based on both solid cryptographic primitives and a community economically encouraged to act in the preservation of the protocol, makes it possible to definitively solve the fiat problem. These two elements result in spontaneous governance which limits the risk of changes in monetary policy.
“We have now lowered the interest rate to 12%. Is it sufficient ? It’s not sufficient. It needs to go even lower. “, Recep Erdogan.
Recep Erdogan is undoubtedly a double agent in the service of the “Satoshi” intelligence agency. By declaring war on interest rates that would cause inflation, he no doubt hopes to lead Turkey to monetary anarchy. From there, it will become obvious that money needs to be permanently separated from the state. The Bitcoin alternative will then become obvious.
