Turkey’s Presidential election (May 14) may play an important role in the country’s future financial situation. They can also affect the local cryptocurrency industry because the two leading candidates – Recep Erdogan (current political leader) and Kemal Kilicdaroglu – share the same vision.
The former declared “war” on bitcoin in 2021 and supported the efforts of the central bank to launch the digital lira. Kilicdaroglu stands in the opposite corner as a promoter of cryptocurrencies and Web3.
A Real Opportunity for Change
Turkey’s upcoming presidential election this weekend looks to be the most contested in more than a decade, with Erdogan facing a formidable opponent – Kilicdaroglu.
The current president has been in power since 2014 and has received a lot of criticism for some of his political decisions. For one, he led the country on a conservative path, distancing it from the Western world and maintaining strong ties with Russia (even though Turkey is part of NATO).
The shaky state of the transcontinental country’s economy during his reign could be another point used by the opposition. Turkey’s inflation rate is one of the highest in the world, while its official currency – the Turkish lira (TRY) – recently fell to a record low against the US dollar.
Kilicdaroglu’s political views appear to be completely different from Erdogan’s. He promised to bring freedom and democracy to Turkey, saying that is what the youth want.
“We want free media and complete judicial independence. Erdogan does not think so. He wants to be more authoritarian. The difference between us and Erdogan is the difference between black and white,” he told the BBC.
Apart from standing as the preferred choice for the younger generation, the 74-year-old politician may gain strong support from the Kurdish minority as the Peoples’ Democratic Party (HDP) prefers to see him as president rather than Erdogan. Approximately 15% of Turkish voters are of Kurdish origin.
According to a recent poll, Kilicdaroglu could get around 49% of the vote on May 14, while Erdogan could collect 43%. However, one candidate needs more than 50% to be elected, meaning a runoff could be on the cards.
Another major difference between Erdogan and his opponent is their stance on cryptocurrencies. In the following lines, we will observe how the election results affect the domestic digital asset sector.
BTC War For Five Years
President Recep Erdogan DECLARED in September 2021 that the government is at war with cryptocurrencies and has “absolutely no intention of accepting” them.
“We don’t give them that kind of premium, neither do we. Because we will continue on the path of our money, which is our main identity in this matter,” he added.
Turkey is also one of the many countries that have not imposed comprehensive oversight of the digital asset sector. The lack of rules is one of the factors that led to the multi-billion scandal related to the crypto exchange Thodex.
According to several sources, the CEO of the entity cheated customers out of $2.6 billion and left the country. He was captured in Albania two years later and CAST back to his homeland to face justice.
Despite Erdogan’s hostile stance on crypto and the chaotic regulatory environment, Turks are showing an increased appetite for digital assets (viewed as an alternative to the TRY’s decline). Indeed, the interest RISE after each time the government introduced anti-crypto policies.
However, it remains doubtful (given his controversial views) that the current president will change his position on the matter and give crypto his blessing.
The Opposite Scenario
Kilicdaroglu’s potential victory could boost the domestic crypto industry as the candidate has promised to allow it to flourish. He is also interested in Web3 technologies, States:
“When we come to power, we will remove the ban on PayPal and expand Web3 platforms. Business ecosystems are our main stakeholders. We will end the economic, scientific, and political interregnum in Turkey.
A country where our entrepreneurs and youth can exist freely is very close. We will do this with the brightest minds in the world and in our country.
In addition, Kilicdaroglu Denounced the central bank’s decision to ban crypto as a means of payment within Turkey’s borders.
“I talked to different stakeholders all day. Blockchain and crypto are the only areas where our $1 billion (Unicorn) initiatives will emerge,” he added.
It’s safe to assume that Turkish crypto enthusiasts are among Kilicdaroglu’s voters this week.
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