Introduction

Turkey has emerged as a prominent country worldwide in the fields of cryptocurrencies and blockchain technology. High inflation and the depreciation of the Turkish lira have driven investors toward alternative assets, while the country’s young and tech-savvy population has rapidly embraced digital innovations.

In recent years, cryptocurrencies have become a significant part of the public discourse in Turkey. Crypto assets, particularly Bitcoin, have gained widespread recognition among the general population. According to research, 19.3% of Turkey’s population—roughly one in every five people—owns cryptocurrency investments. This figure places Turkey as the third country globally with the highest rate of cryptocurrency ownership relative to its population.

Reasons for the Widespread Adoption of Cryptocurrency in Turkey

High Inflation and the Depreciation of the Turkish Lira

The depreciation of the Turkish lira in recent years has driven the public toward cryptocurrencies as a means of preserving value. In 2019, 1 US dollar was approximately 5 Turkish lira, whereas by the end of 2023, it had risen to around 23 lira. During this period, many people adopted dollar-backed stablecoins as a hedge against inflation.

Young and Tech-Savvy Population

Turkey’s young population is highly familiar with mobile banking and digital finance applications. This demographic quickly learned about cryptocurrency technologies and began investing.

Widespread Awareness

Cryptocurrencies have become widely recognized across the country. In 2020, only 16% of the population had heard of cryptocurrencies, but by 2023–2024, this figure had surged to 99%. Virtually everyone is now familiar with terms like Bitcoin, making cryptocurrencies a mainstream topic.

Easy Access and Local Exchanges

Numerous domestic crypto exchanges serve millions of users, offering easy trading with the Turkish lira. There have been periods when daily crypto trading volumes exceeded $1 billion. Thanks to these platforms, the barrier to accessing cryptocurrencies has significantly decreased.

Driven by these factors, Turkey ranked 7th globally in the Chainalysis 2024 Global Crypto Adoption Index and became the leader in the Middle East & North Africa (MENA) region. Moreover, when looking at transaction volume, Turkey is reported as the fourth-largest cryptocurrency market in the world, following the United States, India, and the United Kingdom.

The Turkish lira has also become the fourth most-used fiat currency in global crypto markets. These figures highlight the immense potential of Turkey’s cryptocurrency landscape.

Blockchain in Turkey: Technology and Innovations

As interest in cryptocurrencies grows, the underlying technology—blockchain—has also gained traction in both the private and public sectors in Turkey. Many tech enthusiasts are beginning to explore blockchain’s potential applications beyond cryptocurrencies.

Banking and Fintech Advancements

Even Turkey’s leading banks are not remaining indifferent to blockchain and digital assets. For instance, at the end of 2023, Akbank’s investment arm announced the acquisition of a local crypto company, Stablex. In the same week, Garanti BBVA launched its own crypto wallet application. Major banks such as Türkiye İş Bankası and Yapı Kredi Bank have also applied to the Capital Markets Board (SPK) for crypto asset service provider licenses. These developments indicate that even traditional financial giants are preparing to enter the crypto sector.

Central Bank Digital Currency (CBDC) Project

The Central Bank of the Republic of Turkey (CBRT) has also embarked on blockchain-based digital currency initiatives. Since 2020, the CBRT has been working on the Digital Turkish Lira project. Pilot tests conducted at the end of 2022 resulted in the first successful payment transactions on the Digital TL system, completing the “Phase 1” stage. In a report published in December 2023, the CBRT emphasized that the digital currency could complement existing payment infrastructures. As of 2024, the project has moved into Phase 2, focusing on comprehensive legal, technical, and security assessments. These steps demonstrate Turkey’s strategic investment in blockchain technology at the central bank level.

International Events and Collaborations

Turkey has also showcased its active role in the crypto and blockchain world through international events. In 2023, Istanbul hosted Devconnect, one of the major conferences in the Ethereum ecosystem. Such events bring investors, developers, and enthusiasts from around the globe together in Turkey, accelerating knowledge exchange and increasing the country’s visibility in the blockchain space.

Investor Trends and Social Impact

Cryptocurrencies have become a focus of attention not only for tech enthusiasts but also for the general public and a wide range of investor profiles in Turkey. Even financially literate individuals and traditional investors are now considering adding digital assets like Bitcoin to their portfolios. Recent surveys aimed at understanding Turkish investors’ perspectives on cryptocurrencies reveal striking results.

Investment Preferences and Crypto

Cryptocurrencies have become the third most popular investment vehicle after gold and foreign currency. Interestingly, crypto has surpassed real estate: while the preference for real estate investments was 30% in 2023, it dropped to 26% in 2024, whereas cryptocurrency investments rose to 30%. Stock shares and investment funds trailed behind at 18%.

These figures indicate a significant trend of Turkish investors shifting from traditional assets like real estate and stocks toward digital assets.

Key motivations for this shift include the high return potential, 24/7 accessibility, and the ability to conduct fast transactions.

Social Impact

The widespread adoption of cryptocurrencies in Turkey is also bringing about notable societal transformations. On one hand, financial inclusion is increasing; even segments of the population with limited ties to the traditional banking system or financial tools are participating in investments through crypto platforms. On the other hand, due to high participation, cryptocurrencies have become frequent topics of public discourse.

From TV programs to social media, questions like “What will happen to Bitcoin?” and “What is blockchain?” have become popular subjects.

This broad interest is also influencing government policies, prompting authorities to consider public sentiment when shaping crypto regulations. Experts note that the existence of millions of crypto users in Turkey could have political consequences if harsh prohibitions were introduced in the sector.

Moreover, there is growing interest in using cryptocurrencies in daily life in Turkey. Although using crypto for payments is legally prohibited (as detailed below), some businesses have started accepting crypto for promotional purposes, and the use of stablecoins for international money transfers has become widespread.

Among the younger population, freelancers earning income from abroad or those involved in the gaming and content creation sectors are increasingly opting to receive payments in crypto.

This shows that cryptocurrencies are being embraced not only as investment tools but also as a new form of financial interaction.

Cryptocurrency Adoption in Turkey

In 2024, cryptocurrency became a mainstream investment tool in Turkey, widely embraced by the general public. High inflation and economic fluctuations led many citizens to turn to cryptocurrencies as an alternative means of storing value and investing.

Thanks to this growing interest, cryptocurrency adoption has spread across the country, positioning Turkey as a significant player in the global crypto ecosystem.

According to data from blockchain analytics firm Chainalysis’s 2024 Global Crypto Adoption Index, Turkey recorded $136.8 billion in crypto transaction volume between July 2023 and June 2024, making it the largest crypto market in the Middle East and North Africa (MENA) region and the seventh-largest globally.

Additionally, a global consumer survey conducted by Statista in 2024 revealed that approximately 47% of participants in Turkey reported owning cryptocurrency.

With this figure, Turkey, alongside Nigeria, ranks as one of the countries with the highest crypto ownership rate worldwide.

Looking Ahead

Turkey’s cryptocurrency potential is highly promising, both in its current state and in its future prospects. Current data shows that millions of Turks have integrated cryptocurrencies into their daily financial lives. With its large user base and strategic geographic location, Turkey is on its way to becoming a crypto hub in the region. What can we expect in the near future?

Growth in Institutional Adoption

The adoption of crypto by institutional players, from banks to large corporations, is likely to accelerate. Following examples set by Akbank and Garanti, other financial institutions may also begin offering blockchain-based services. Scenarios such as Borsa Istanbul piloting securities transactions on blockchain or the use of blockchain for interbank transfers could become realities. These developments would integrate crypto as an inseparable part of the financial system.

Diversification of Investors

With the clarification of regulations, it is likely that institutional investors—such as investment funds and pension funds—will begin allocating small portions of their portfolios to crypto assets. On the individual side, as financial literacy improves, investors may diversify into a wider range of crypto projects, not just Bitcoin or Tether, but also innovative altcoins and decentralized finance (DeFi) products.

Issuance of a Central Bank Digital Currency (CBDC)

If the Central Bank of the Republic of Turkey (CBRT) achieves successful outcomes in the upcoming phases of its digital lira project, the limited circulation of the Digital Turkish Lira could become a reality within a few years.

This would mark the first time that the monetary base of the Turkish economy would be partially shifted onto a blockchain-like infrastructure—a major milestone that would represent a convergence of the crypto ecosystem and the official monetary system.

Regulatory Developments and International Cooperation

Turkey continues to closely follow international standards in crypto regulation. It will keep updating its legal framework in line with recommendations from bodies such as the FATF, the European Union, and other organizations. In the coming period, more explicit rules regarding the taxation of crypto gains are expected; the Treasury is reportedly working on some tax regulations for 2025.

Additionally, Turkey is expected to participate in regional collaborations aimed at combating crypto-related crimes and monitoring cross-border crypto transfers.

Conclusion

The cryptocurrency ecosystem in Turkey is experiencing dynamic growth and undergoing a multifaceted transformation. Investors, tech enthusiasts, entrepreneurs, and the general public are increasingly engaging with and adapting to this new financial world. Thanks to the government’s balanced approach, both innovative ventures are flourishing, and steps are being taken to protect users.

With its young population and digital adaptability, Turkey has the potential to become a global leader in the cryptocurrency space. Through proper governance and sustainable growth, cryptocurrencies are poised to play a significant role in Turkey’s financial future.

Building an ecosystem that encourages innovation while minimizing risks in line with the country’s economic realities will position Turkey as a leader in its region during the blockchain era.

The journey of the cryptocurrency revolution in Turkey is just beginning, and the coming years may reveal the full extent of the country’s potential in this field.