The Banking Executive Magazine - April 2024

Crypto Adoption In Turkey crypto market by estimated transac- tion volume globally, ahead of other major economies. TOP REASONS FOR INVESTING IN CRYPTO IN TURKEY Binance survey about the motiva- tions behind investing in crypto in Turkey indicated that the potential for profits was the most compelling rea- son. Operational factors related to the ease and accessibility of investing also stood out as major motivators. This highlights the perceived benefits of this innovative asset class. CHALLENGES FACING INVESTMENT IN CRYPTO IN TURKEY Binance survey about factors against investing in crypto in Turkey reveals that risk was the main concern. The perception that cryptocurrencies are risky continues to be the main hurdle for adoption. The second and third most common areas of concern, namely insufficient knowledge and a lack of safety, also play a role in this perception. REVENUE IN THE CRYPTOCURRENCIES MARKET IN TURKEY According to Statista Market Insights, revenue in the Cryptocurrencies mar- ket in Turkey is projected to reach US$139.2m in 2024. Revenue is ex- pected to show an annual growth rate (compound annual growth rate (CAGR) 2024-2028) of 10.44% re- sulting in a projected total amount of US$207.1m by 2028. The average revenue per user in the Cryptocur- rencies market in Turkey amounts to US$10.7 in 2024. Global data shows that the highest revenue is reached in the United States (US$23,220.00m in 2024). In the Cryptocurrencies market in Turkey, the number of users is ex- pected to amount to 15.25m users by 2028. User penetration will be 15.01% in 2024 and is expected to hit 17.30% by 2028. CRYPTO ADOPTION AND INFLATION IN TURKEY According to KuCoin, as inflation is rising in Turkey, crypto adoption is also rising in Turkey. Over the last year and a half, crypto adoption in Turkey has increased from 40 percent to 52 percent of the Turkish popula- tion. The growing number and percentage of crypto investors in Turkey indicate an increasing interest and accept- ance of crypto as a hedge against in- flation, especially with the Turkish lira losing over 50% of its value against the United States US dollar According to KuCoin survey, 58 per- cent of respondents said that their primary reason for investing in cryp- tocurrency is to accumulate wealth over the long term, while 37 percent ISSUE 184 APRIL 2024 the BANKING EXECUTIVE 29