High inflation has made Turkey a leader in cryptocurrency ownership. Can cryptocurrencies, which are inherently volatile, become safe havens? For Turkey and Argentina, the answer to this question is definitely “yes”.
According to the data of GWI, the leading research company in digital currency ownership in Turkey, digital currency ownership in Turkey has the highest rate in the world with 27.1%. Argentina follows Turkey with 23.5 percent. According to the shared data, the world average in cryptocurrency ownership is 11.9%. According to these data, Turkey is almost 130 percent ahead of the world average in cryptocurrency ownership. So why are Turkey and Argentina adopting cryptocurrencies?
Another point that Turkey and Argentina have in common, in addition to high cryptocurrency ownership, is high inflation. While Turkey's annual inflation was 50.51 percent in March, Argentina's was 104 percent. Most safe-haven purchases consist of stablecoins such as USD Coin and Tether, which are crypto tokens that are pegged to a traditional asset like the US dollar or gold. These tokens offer investors an alternative to the scarce currency.
Kaiko analyst Dessislava Aubert said that the trading volume of the USDT-Turkish lira pair reached the highest level in recent months last week amid the weakening of the Turkish currency and the upcoming important presidential and parliamentary elections.
