When it comes to blockchain implementation, Turkey isn’t exactly at the forefront of innovation. However, with the emergence of blockchain in the global banking and big data industries, the Borsa Istanbul Stock Exchange (BIST) has decided to join the blockchain revolution and create its own.
The new blockchain is designed to synchronize information in the customer database of Borsa Istanbul, Istanbul Clearing, Settlement and Custody Bank (Takasbank), and the Central Securities Depository of Turkey’s (MKK) – making trading more efficient. Turkey’s interest in creating its own cryptocurrency has risen in the past months. It represents an interesting turn of events given the fact that the Directorate for Religious Affairs previously said that bitcoin is haram and not compatible with Islamic laws.
Enhanced KYC Procedures
The new blockchain developed by the Borsa Istanbul has been built to adhere to the latest KYC regulations used around the globe. This new up-to-date KYC framework gives the Borsa Istanbul the ability to manage documents, share information, and accept new customers while complying with the latest international trading laws.
Almost every crypto trading platform has some form of KYC process in place, but none are quite as advanced as Skrill’s. In an exclusive interview with BitStarz news, Lorenzo Pellegrino – Skrill CEO – said “thanks to our industry-leading KYC tools we also have the capability to bring on board new user quickly and safely, which is another strong differentiator for us.”
Creating its Own Crypto
Turkey has had a number of international sanctions placed on its economy, and this has severely devalued its fiat currency – the Turkish Lira. The devaluation of the Lira has caused many citizens to run to Bitcoin as a safe haven – something we have seen a number of other sanction laden countries do. Venezuela was the first country to show these patterns, and it ended up creating its own government-backed cryptocurrency – the Petro. While the Petro has come under attack from the crypto world for being a scam, it does seem to be helping the homeless of Venezuela more than BTC is at the moment.
It appears as if Turkey isn’t going to wait until things are as bad as they are in Venezuela to create its own crypto though. Rumors persist that a Turkish government-backed crypto is in the works and could even be close to release.
Blockchain Making its Mark
Blockchain technology is already evolving at a rapid pace, as more companies begin to design blockchains the technology will only develop further. Already we have seen a new smart contracting language – AxLang – created in order to make smart contracting safer and easier. A blockchain dedicated to traditional stock trading is a vital step for blockchain technology in becoming adopted globally and part of everyday life.
The Borsa Istanbul’s new blockchain combined with the government’s changing stance towards cryptos is helping put Turkey on the blockchain map. As its economy continues to suffer through international sanctions, the drive from citizens to use blockchain and cryptos will only become stronger. The trend of weakening economies turning to blockchain could potentially signal the end of the fiat world as we know it.