[2018-02-23] Turkey Eyeing Launching State-Backed ‘Turkcoin’

[Dany44]

Following on From Venezuela’s state-back cryptocurrency, Turkey is proposing something similar

According to local media reports, Turkey is busy mulling over create its own state-backed cryptocurrency called the ‘Turkcoin.’ This has come about through an alliance in the country's political parties.

Turkey has not taken a positive stance towards Bitcoin following its rise last year, ministers being known to liken it to a pyramid scheme and warning those interested in staying away.

However, there seems to be a change of mind now as the Nationalist Movement Party (MHP) argues that instead of dismissing cryptocurrencies, Ankara should draw up legislation to regulate and control the market.

Detailed report

The suggestion came from MHP deputy chair and former Industry Minister Ahmet Kenan Tanrikulu. He is the one proposing this state-backed coin because he feels that there would be dire repercussions should Turkey not cash in on the Blockchain technology underlying cryptocurrencies.

The world is advancing toward a new digital system. Turkey should create its own digital system and currency before it’s too late,

he told Al-Monitor.

Currently, regulation in Turkey is slow on the uptake, whereas the cryptocurrency market is in full flight. So, despite the lack of legal framework, the Turkish population is continuing to forge ahead with digital currencies.

Regulation

Clearly, the issuing of a state-backed cryptocurrency, while controversial, will lead to full-on regulation of said coin, and give the government control of a new technology.

The need for regulation is obvious,

Tanrikulu said.

Also, the use of those currencies in illegal activities must be prevented.

He continued,

We need to create the infrastructure for the Blockchain database. There are nearly 1,400 digital currencies in the world today and many countries are using them. We, too, can create a digital currency, based on companies in the Wealth Fund. Since the demand exists, we should create and release our own digital currency. Opposing those currencies is meaningless. This is a national issue which requires a national consensus.

Second state-backed coin?

Turkey, should it go ahead with this plan, will not be the first to launch a state-backed coin as this week Venezuela started their pre-sale of the Petro, a state-backed and oil-pegged, cryptocurrency.

Sorce: https://cryptocomes.com/turkey-eyeing-launching-state-backed-turkcoin

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[kueyen]

Regulations I'm fine with, but what use is a state backed coin going to have? It's against the grain of cryptocurrencies, and no one in their right mind would invest in them. I think state backed coins are just an alternative of securities, like digital securities, sort of.

[Samarkand]

Regulations I'm fine with, but what use is a state backed coin going to have? It's against the grain of cryptocurrencies, and no one in their right mind would invest in them. I think state backed coins are just an alternative of securities, like digital securities, sort of.

I´m also pessimistic about state-backed cryptocurrencies.

However, there are a few situations where they can actually be highly beneficial for a country.
One of the most common potential use cases is the ability to circumvent international sanctions.

E.g. countries like Russia or Venezuela that are subject to sanctions can try to sell off resources,
weapons or other stuff that they aren´t allowed to sell. A state-backed cryptocurrency would
allow them to bypass the international banking system that is heavily controlled by the US and therefore
is crucial for enforcing international sanctions.

Whether this use case is a pipe dream or an actual way of dealing with sanctions remains yet to be seen.

[Cryptoprimes]

Regulations I'm fine with, but what use is a state backed coin going to have? It's against the grain of cryptocurrencies, and no one in their right mind would invest in them. I think state backed coins are just an alternative of securities, like digital securities, sort of.

I´m also pessimistic about state-backed cryptocurrencies.

However, there are a few situations where they can actually be highly beneficial for a country.
One of the most common potential use cases is the ability to circumvent international sanctions.

E.g. countries like Russia or Venezuela that are subject to sanctions can try to sell off resources,
weapons or other stuff that they aren´t allowed to sell. A state-backed cryptocurrency would
allow them to bypass the international banking system that is heavily controlled by the US and therefore
is crucial for enforcing international sanctions.

Whether this use case is a pipe dream or an actual way of dealing with sanctions remains yet to be seen.

Am I right that state-backed cryptocurrencies are not actually cryptocurrencies?