Could Turkey prompt better blockchain adoption in Eurasia?
Could Turkey prompt better blockchain adoption in Eurasia?

Could Turkey prompt better blockchain adoption in Eurasia?

By Giorgi Mikhelidze - 13 Jul 2019

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According to a recent news, the Republic of Turkey has indicated blockchain integration in its economic outlook for the years between 2019 and 2023.

The official announcement states that Turkey’s logistics and customs offices will be transitioning over to the blockchain platform in order to introduce better transparency and efficiency.

Although the decision is not final yet, it’s quite likely that Turkey will go ahead with the introduction, simply because they’ve already teased the creation of a nationalised digital currency.

The Turkish authorities also mentioned that blockchain will be used to develop artificial intelligence in the country to better accommodate increasing need in tech development in various sectors.

The paper doesn’t specifically mention anything about the introduction of a cryptocurrency though, it simply says that the blockchain technology will be used, therefore the Turkcoin enthusiasts have not much to write home about.

But the fact that blockchain will be used in such a crucial international trade location is definitely great news. Due to Turkey’s geographic location, it acts as the gateway between Europe and Asia, practically being the one and only road for land-based transport between the two continents.

Countries to be affected

There are reasons to believe that neighbouring countries will be directly affected by Turkey’s decision to introduce blockchain themselves, as the only method of crossing the border to “Asia Minor” would require at least some blockchain knowledge.

The countries that are going to be affected most are Bulgaria, Greece, Georgia, Azerbaijan and Cyprus.

Since both Azerbaijan and Georgia use Turkey as their primary gateway towards the European markets, they’ll have to implement some kind of a government agency which would ensure clear blockchain guidelines for local transport companies.

For Georgia, it’s going to be quite easy as the country is already quite blockchain literate, while Azerbaijan will have to start from scratch.

With Bulgaria and Greece, it’s going to be slightly different as they’re not too reliant on free travel with Turkey due to much less export in the Middle East and Asia.

Importance of Cyprus is paramount

However, the country most impacted by the chance could be Cyprus, especially the northern part.

Due to political differences, the island of Cyprus is divided into two jurisdictions, where the northern part is governed by a Turkish government and the southern part is governed by a Greek government.

Should the Turkish side implement the blockchain, the greeks in Nicosia will have to answer somehow as well. The local financial authority, CySEC is sure to combat the blockchain adoption in the north with their own version in order to somehow maintain dominance in the region.

According to this XM Forex broker review, CySEC is one of the most important financial regulators in the European Union, as most financial service providers seek a license there. This is simply due to the fact that it’s slightly cheaper and more accessible to operate a financial company in Cyprus than any other EU member state.

Having so many companies registered locally and offer services to a wide range of EU customers is sure to support the spread of blockchain knowledge and adoption across multiple European investors ultimately promoting the technology.

This is a primary reason as to why blockchain in Cyprus could be the best byproduct of Turkey’s decision.

Potential for Turkish cryptocurrency

The proposed plan also mentions revamping the country’s perception and management of electronic money, which directly entails the involvement of banks located in Istanbul.

Due to the fact that most of Turkish banks have already collaborated with crypto exchanges, which would act as liquidity providers, it’s safe to say that the next four years could materialise the Turkcoin so many crypto enthusiasts have been waiting for.

This is especially realistic in the wake of Libra’s domination in the region, as the government would want to have at least some counter to Facebook’s project.

Giorgi Mikhelidze

Giorgi is a Georgia software developer with two years of experience trading on the financial markets. He is now working to spread the knowledge about the Blockchain in his country and share all of his findings and research to as many crypto enthusiasts as possible.

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