Turkey’s President Appoints Crypto Expert To Monetary Policy Committee

The president of Turkey, Recep Tayyip Erdoğan, has reportedly appointed crypto and blockchain expert Prof. Dr. Fatma Özkul to the central bank’s monetary body. A decree nominating Özkul was released on December 22, according to Bloomberg.

Özkul has been a faculty member at Marmara University Faculty of Business Administration, Department of Accounting and Finance since 2012 and has many academic publications in the fields of accounting, finance, and auditing. She is also the advisory board member of the BlockchainIST Center. Özkul authored several books, including “Fraud Risk Management in Businesses” and “Accounting Practices in Retail Businesses.” Moreover, his book “Crypto Asset Accounting” received the “Best Finance and Economics Book of the Year” award in 2023.

Özkul is the newest member of Turkey’s Central Bank Monetary Policy Committee (MPC), whose primary duty is to set the benchmark interest rate to manage inflation. The inflation rate in Turkey topped 61.98% in November this year. In response to this inflation, the committee raised the country’s interest rate by 2.5 percentage points to 42.5%.

The Turkish government is continuing efforts to regulate the crypto sector in the region as crypto trading picks pace amid high inflation. The new rules to regulate the industry are likely to focus on taxation and licensing. The country expects to submit a draft law to regulate digital assets next year.

President Erdoğan reportedly established a new economy management team after winning Turkey’s general election in May. He appointed former Goldman Sachs Group Inc. banker Hafize Gaye Erkan as central bank governor in June.

Turkey’s Evolving Stance On Crypto

Turkey’s central bank has been actively exploring the digital asset market. The bank introduced a digital Turkish lira collaboration platform. Moreover, it successfully conducted the initial test of its own digital currency last year, marking a significant step toward the adoption of a blockchain-based financial system.

The country’s economic landscape has been boosting crypto adoption. A blockchain analytics firm Chainalysis report reveals that Turkey secured the fourth position globally in raw crypto transaction volumes.

In response to the rise in crypto transactions, Turkish authorities are reportedly contemplating regulatory measures for the crypto market. They aim to remove Turkey from the “grey list” of the Financial Action Task Force (FATF). The upcoming regulations will introduce specific licensing requirements to prevent system misuse. Moreover, these requirements will encompass various aspects, including digital security enhancements, capital adequacy standards, custody services, and reserve verifications.