Turkish lira in trouble: Will bitcoin save the day?

TAGs: Bitcoin, Jasmine Solana, turkey

A new wave of crisis is threatening the already fragile global financial market.

Turkish lira in trouble: Will bitcoin save the day?Last week, the Turkish lira dropped 5 percent against the U.S. dollar—a worrying trend for a major currency—less than 24 hours after news broke out that the military has taken over the government of Turkey. The violent uprising, which left at least 161 people dead, caused the iShares MSCI Turkey ETF to decrease significantly in value as well.

So far, it appears things have already calmed down in Turkey. But it remains impossible to tell how the matters will unfold in the coming days. The uncertainty in the country has already prompted consumers and investors to rush to bank ATMs to withdraw their cash, putting a strain on the local economy.

On a global scale, the events in Turkey could deal another blow to the international financial market, which is still reeling from the effects of the Brexit vote. So where does digital currency fit into all of these?

The attempted coup has no negative effect on the bitcoin price, which grows steadily even after the scheduled—and dreaded—halving process. Experts have long been advocating bitcoin as a “safe haven” asset—one that “benefits in times of macroeconomic uncertainty in which its strengths as an investment vehicle whose value is derived solely from a global market are best on display.”

US starts writing rules for bitcoin

Over in the United States, the popular digital currency and its underlying technology is making headway in the legislative arena.

North Carolina now has a law that defines virtual currency and clarifies what activity needs to be licensed. Under the bill, also known as the North Carolina Money Transmitter Act, miners and blockchain software providers don’t need a license for a multi-signature software, smart contract platforms, smart property, colored coins, and non-hosted, non-custodial wallets.

North Carolina joins 11 other states that have updated their laws—or are studying the issue—to address businesses connected with cryptocurrency. Among the states that have issued laws and guidance include Oregon, New York, Kansas, Texas, and South Dakota, while Colorado, Maine, Nebraska, Virginia, Kentucky, and Pennsylvania as studying the issue.

Daily price and transaction volume

Bitcoin is once again poised to break the $680 price ceiling. The popular digital currency traded at $674.04 on Tuesday, with a market cap of over $10.66 billion.


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