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Half The People In Turkey Now Own Crypto: Report
According to a research survey conducted by KuCoin, crypto adoption is on the rise in Turkey, increasing from 40% to 52% of the Turkish population holding crypto over the last year and a half. Notably,Turkey is in the throes of high inflation.
“Per our findings in Turkey and other previous country reports, for Turkey, the growing number and percentage of crypto investors indicate an increasing interest and acceptance of crypto as a hedge against inflation, especially with the Turkish lira losing over 50% of its value against the US dollar.”
The KuCoin representative pointed to similar previous KuCoin reports about Brazil and Nigeria, where inflation is also a massive problem.
According to the survey, 58 percent of respondents said their “primary reason” for investing in cryptocurrency is to “accumulate wealth over the long term,” while 37 percent aim to use it as a store of value.
Regarding which cryptocurrencies people are investing in, Bitcoin leads the pack: 71 percent of Turkish people surveyed said they own Bitcoinn, while 45 percent own Ethereum and other stablecoins.
Although men still are more likely to invest in crypto, young women in Turkey are increasingly investing. 47 percent of crypto investors between the ages 18 and 30 are female. The report indicates that 57% of respondents decided to invest because of word of mouth about its benefits from friends and family.
The Turkish government has been experimenting with a central bank digital currency (CBDC) called the Digital Lira.
“We believe that having a deep and comprehensive understanding of the crypto community is crucial in molding a more encompassing and accountable financial ecosystem,” the KuCoin representative said. “As the crypto environment keeps gathering pace, understanding crypto users’ actions, inclinations, and driving forces across various regions becomes increasingly essential.”
FTX Wallet Activity Sparks Token Dump Fears As Bankruptcy Hearing Approaches
According to data from blockchain analytics platform Arkham Intelligence, a wallet belonging to bankrupt crypto exchange FTX has moved $10 million worth of digital assets from the Solana network to Ethereum since August 31st.
These transfers have sparked concerns among investors who speculate them to be the beginning of a series of token dumps amid the exchange’s bankruptcy proceedings.
The FTX debtors, in a filing last month, proposed a typical limit of $100 million per week and a maximum limit of $200 million per week for selling digital assets in order to minimize price impact.
The filing also proposes that for sales of bitcoin, ether, and certain other “insider” digital assets, ten days notice be given to the Committee and Ad Hoc Committee of creditors before the sale. While this filing is not yet legally binding, the matter is expected to come before the Delaware Bankruptcy Court on September 13.
In an April filing, the FTX debtors disclosed $3.4 billion in crypto holdings. While the precise breakdown of how much the destate holds in larger, more liquid tokens like bitcoin and ether has not been disclosed, the estate has disclosed its holdings of relatively illiquid tokens.
The FTX debtors have proposed a plan under which the estate’s token sales would be guided by a financial adviser. The estate would only be permitted to sell $100 million per week of most tokens, though that limit could be permanently raised to $200 million on a token-by-token basis.
The debtors also plan to hedge bitcoin and ether in order to minimize the impact of price movement on the proceeds of the sale, though other assets could also be approved as hedges again on a token-by-token basis.
The debtors also plan to hedge bitcoin and ether in order to minimize the impact of price movement on the proceeds of the sale, though other assets could also be3 approved as hedges again on a token-by-token basis.
Finally, the estate reserves the right to stake certain tokens provided that the returns from token staking programs would help return more funds to the creditors.
China’s Digital Yuan Must Be Available In All Retail Scenarios, Says Central Bank Official
Changchun Mu, the direc tor of the Digital Currency Research Institute of the People’s Bank of China, has stated that the digital yuan (China’s CBDC) must be available in all retail payment scenarios.
He has asked wallet providers such as WeChat, Alipay, commercial banks with their mobile banking apps and other payment apps including e-CNY operators, to remain wary of compliance requirements and obtain relevant financial licenses.
“In the short term, we can start by unifying QR code standards on a technical level to achieve barcode interoperability,” he added. “In the long term, we will steadily implement the upgrade of payment tools.”
Mu’s words came after the central bank last year pledged to push for universal QR payment codes, allowing consumers to pay by scanning a unified barcode. The use of QR code payment systems, dominated by WeChat Pay and Alipay, is already widespread in China.
The PBOC has been testing the e-CNY and rolled out a pilot app in January 2022. Since the inception of the digital yuan pilots in late 20-19, the PBOC has expanded its digital yuan trial to at least 26 locations in 17 provincial-level cities and regions, including Beijing, Shanghai, Shenzhen and Suzhou, state media Xinhua reported in April.
However, the e-CNY, currently being tested in pilot regions across China, remains far from achieving widespread adoption.
Mu said that the current interbank payment and settlement systems function well and there is no need to replace them with the CBDC system, according to the report.
“However, it is possible to achieve seamless integration by enabling comprehensive interoperability between the e-CNY and existing electronic payment tools and commercial bank deposits,” Mu said.
On a wholesale level, Mu said that the digital yuan can be used for settlement as part of the financial market infrastructure, and smart contracts c an be put to use to conduct delivery versus payment and payment versus payment, “thereby enhancing wholesale payment efficiency.”